Indian Equities Rally Amidst Global Relief, Nifty Surpasses 22,300 Mark

At the close, the Nifty 50 was at 22,336.40 up by 0.86%

On April 22, the NSE Nifty 50 commenced on a positive note, witnessing a rise of 0.86% and closing in the green zone, surpassing the 22,300 mark. This upward momentum in Indian equities was fueled by a collective relief rally in both domestic and global markets. Positive cues from the global arena, coupled with a slight easing of tensions between Iran and Israel, contributed to the market’s optimistic sentiment.

Throughout the trading session, the market exhibited a range-bound pattern with a positive bias, culminating in a notable uptick during the final hour of trading. The Nifty concluded at 22,336.40, marking a gain of 189.40 points. This consecutive increase reflects the dominance of bullish sentiments, with the market reclaiming critical moving averages, signaling a positive trend.

However, despite the recent rally, concerns linger over the bearish bias due to elevated US bond yields, which may trigger foreign outflows in the near term. As corporate earnings season progresses, stock-specific actions are expected to drive market movements, prompting experts to advise accumulating quality stocks until uncertainties dissipate.

On the global front, investor focus remains on the Federal Reserve’s inflation data due on April 26, which will provide insights into future rate adjustments. Recent cautious remarks from the US Fed regarding inflation and interest rates have influenced market sentiments, with expectations of a prolonged higher interest rate environment.

Amidst ongoing geopolitical tensions and hawkish signals from the US Fed, the Indian market continues to show resilience. However, the possibility of prolonged consolidation persists, influenced by moderating earnings growth and prevailing global economic factors.

Bank Nifty: Up by 0.74%

Today, both the Bank Nifty and the BSE Sensex demonstrated positive momentum, continuing their upward trajectory. The Bank Nifty opened in the green, recording a rise of 0.74%, and concluded the trading session on a positive note, closing at 47,924.90. Similarly, the BSE Sensex exhibited a commendable increase of 0.77%, reaching a high of 73,648.62 at the close of the day.

In the sectorial front, the Consumer Durables sector witnessed notable gains, surging by 2.40%. Among the standout performers, Voltas Ltd. demonstrated remarkable growth, gaining by 6.07%. Similarly, Whirlpool Of India Ltd. saw a substantial increase of 5.93%, while Dixon Technologies (India) Ltd. experienced a healthy rise of 3.98%.

Foreign Institutional Investors (FIIs/FPIs) recorded a buy value of Rs. 13,189.75 crore, while their sale value amounted to Rs. 16,104.98 crore, resulting in a net value of -Rs. 2,915.23 crore.

Conversely, Domestic Institutional Investors (DIIs) exhibited a strong buying trend, with a buy value of Rs. 11,855.59 crore and a sale value of Rs. 8,312.66 crore, leading to a net value of Rs. 3,542.93 crore.

Bank Nifty

The Nifty Banking sector had some gainers and some losers for the day.

The gainers included Punjab National Bank with a 4.33% increase, Bandhan Bank with a 4.32% increase, Axis Bank with a 2.50% increase, State Bank of India with a 2.36% increase, and Bank of Baroda with a 1.91% increase. On the other hand, the biggest losers in the sector included HDFC Bank with a 1.11% decline, AU Bank with a 1.01% decline, and IndusInd Bank with a 0.07% decline. These results suggest that most of the banking stocks performed better for the day.

Rupee Strengthens Against US Dollar Amid Positive Market Sentiments

The Indian rupee exhibited resilience against the US dollar, gaining by 7 paise to close at 83.37 (pro) on Monday. This upward movement was propelled by favorable domestic market conditions and a softened American currency. Additionally, a decrease in crude oil prices provided further support to the local unit.

Opening at 83.40 against the greenback in the interbank foreign exchange market, the rupee saw fluctuations throughout the day, reaching an intra-day high of 83.32 and a low of 83.45 before settling at 83.37, marking a 7 paise increase from its previous close.

The positive outlook for the rupee is reinforced by easing geopolitical tensions in the Middle East, which has improved global risk sentiments. Furthermore, the retreat of the US Dollar and declining crude oil prices are anticipated to bolster the rupee’s performance in the near term.

In contrast, the dollar index, measuring the greenback’s strength against a basket of six currencies, experienced marginal gains, trading at 106.17. Despite geopolitical uncertainties, the US Dollar remained firm above the 106 mark, influenced by a hawkish stance from the US Federal Reserve.

Meanwhile, Brent crude futures, the global oil benchmark, observed a 0.69% decline, reaching $86.69 per barrel, contributing to the overall positive sentiment in the market.

Stocks Highlights

Bharat Petroleum Corporation Ltd. (BPCL) witnessed a notable increase in its share price, rising by 3.11% from its previous close of Rs 585.80 to reach Rs 604.00. The company’s prudent financial management is evident, with minimal expenditure on interest and employee costs, accounting for less than 1% and 0.59% of operating revenues, respectively, in the fiscal year ending March 31, 2023. However, recent market indicators suggest a sell signal, with a weekly stochastic crossover observed in the week ending April 19, 2024, historically resulting in an average price decline of -6.47% within seven weeks.

Comparing stock returns, BPCL yielded a 3-year return of 40.03% versus the Nifty 100’s return of 56.96%. Similarly, against the Nifty Energy, BPCL’s return stands at 40.03% compared to 126.57% over the same period.

In contrast, NTPC Ltd. experienced a decline in share price by -1.80% to Rs 344.25 from its previous close of Rs 350.55. The company’s financial allocation towards interest and employee costs was higher, constituting 6.33% and 3.7% of operating revenues, respectively, for the fiscal year ending March 31, 2023.

Despite this, NTPC has showcased impressive stock returns, boasting a 3-year return of 254.27% compared to Nifty 100’s 56.96% and S&P BSE Power’s 188.7% over the same period. Investors should carefully weigh these factors when considering investment opportunities in BPCL and NTPC.

Advance Decline Ratio

Today, the advance-decline ratio was 2.49, and the market breadth was positive. The volatility index India Vix decreased by 5.62 percent to settle at 12.70 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1838
Decliners – 739
52Wk High – 151
52Wk Low – 22
High Band Hitters – 209
Low Band Hitters – 53
200d SMA – 20655
50d SMA – 22181
20d SMA – 22313

Top Gainers and Losers Stocks

The top gainers were Tata Consumer (+3.29%), BPCL (+3.11%), Larsen & Toubro (+2.89%), Eicher Motors (+2.85%), and Shriram Finance (+2.54%).

The top losers were NTPC (-1.80%), HDFC Bank (-1.11%), JSW Steel (-0.98%), IndusInd Bank (-0.07%), and Bajaj Auto (-0.05%).

Top Gainers and Losers Sector

The top gainers sector were Consumer Durables (+2.40%), Pharma (+1.30%), Auto (+0.94%), FMCG (+0.84%), and Realty (+0.74%).

SECTORS – NOTABLE ACTION
CONSUMER DURABLES +2.40%
PHARMA +1.30%
AUTO +0.94%

Stocks Ban List

(SEBI) F&O ban list (IDEA open at -12.40 and close at -12.90), (BIOCON open at -264.40 and close at +271.15), (ZEEL open at +144.30 and close at -142.10), (PEL open at +842.00 and close at +836.85), (EXIDEIND open at -447.00 and close at +465.95), (METROPOLIS open at +1735.00 and close at +1789.55), (BANDHANBNK open at +175.75 and close at +180.80), (SAIL open at +148.25 and close at +148.40), and (BALRAMCHIN open at +369.55 and close at +374.50) are not currently on the stock exchange.

A stock enters the Ban List if its MWPL is above 95%. Implying that, Ban List shows the Futures and Options (FnO) stocks whose combined open interest in all FnO contracts for a given period crosses 95% of Market-Wide Position Limit.

CANBK, TATACHEM, PNB, VEDL, BATAINDIA, INDUSTOWER, LICHSGFIN, and INDIACEM stocks has the possibilities of entrance in the ban list.

SAIL, and BALRAMCHIN stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 22150 to 22500 is the Nifty 50 trading range.

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Market Bounces Back Strongly as Banks and Metals Lead the Way
Bears Take Charge on D-Street Nifty Dips Below 22,000

This article is only for educational purposes and is not an investment advice.