Indian Equity Benchmarks Reach 5-Month High, Extend Winning Streak

At the close, the Nifty 50 was at 18,398.85 up by 0.46%

NSE Nifty 50 commenced its journey on an elevated note, soaring to great heights with a remarkable surge of 0.46 percent. As the trading session reached its denouement, the index gracefully concluded its upward trajectory, elegantly settling in the verdant territory. The Nifty, with its resplendent performance, approached the milestone of 18400, leaving an indelible mark on the financial landscape.

In a triumphant feat, the Nifty has achieved a decisive close above the upper threshold of 18,350, signifying a breakthrough from a period of sideways consolidation. This breakout has tilted the balance of power in favor of the bulls, setting the stage for a potential continuation of the positive momentum. To navigate such a situation with finesse, an ideal trading strategy would involve riding the upward trend while implementing a trailing stop-loss mechanism.

The domestic benchmark indices continue their resolute march forward, propelled by a confluence of favorable factors. Notable among these are the decline in inflation levels, the steady influx of foreign investments, and the anticipation of robust quarter-on-quarter earnings growth, courtesy of the downturn in global commodity prices. The domestic consumer price index (CPI) inflation surpassed expectations, registering an impressive 4.7%, while the wholesale price index (WPI) inflation witnessed a significant decline of 0.92%. These developments reaffirm the astute decision of the Reserve Bank of India (RBI) to maintain its stance on rate hikes.

Bank Nifty: Up by 0.64%

Bank Nifty commenced its trading expedition on a positive note, ushering in a new wave of optimism with a notable surge of 0.64 percent. As the day progressed, the index continued to tread the path of prosperity, culminating in an elegant closure in the lush green terrain, at a resplendent value of 44,072.10. Following a similar trajectory, the BSE Sensex embarked on an upward journey with a commendable ascent of 0.51 percent, gracefully culminating at an illustrious pinnacle of 62,345.71, all while adorning the mantle of a symbol of success.

The strategic purchasing of prominent stocks from vital sectors such as banking, finance, automobile, and FMCG is bolstering the index, allowing it to sustain a positive sentiment even amidst varied global cues. Furthermore, signals indicate a favorable outlook for the current trend to persist. Traders are advised to align their positions accordingly and refrain from contrarian trades.

On the sectorial front, the Realty sector emerged as the top gainer with an impressive 4.32% surge. Within this sector, SOBHA LIMITED witnessed a gain of 11.54%, DLF LIMITED experienced a gain of 7.36%, MAHINDRA LIFESPACE DEVELOPERS LIMITED saw a gain of 6.79%, and PRESTIGE ESTATES PROJECTS LIMITED recorded a gain of 5.27%.

Bank Nifty

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

The gainers included Bandhan Bank with a 3.04% increase, Bank of Baroda with a 2.97% increase, IDFC First Bank with a 2.06% increase, Federal Bank with a 1.51% increase, and Punjab National Bank with a 0.93% increase. There are no losers for the day. These results suggest that banking stocks performed better for the day.

Buzzing

Hero MotoCorp Ltd. witnessed a commendable surge in its share price, ascending by 3.30% from its previous close of Rs 2,605.90. The stock of Hero MotoCorp Ltd. reached a last traded price of 2,691.90, showcasing its upward trajectory. Over a span of three years, the stock generated a noteworthy return of 18.8%, outperforming the Nifty Auto index that provided investors with a return of 139.67%. Furthermore, in the same three-year time period, Hero MotoCorp Ltd. delivered a return of 18.8%, surpassing the return of 94.81% achieved by the Nifty 100 index. The company’s annual revenue growth of 15.35% surpassed its three-year compound annual growth rate (CAGR) of 4.97%, reflecting its exceptional performance.

Tata Motors Ltd. witnessed an impressive upswing in its share price, experiencing a 3.05% increase from its previous close of Rs 515.95. The stock of Tata Motors Ltd. achieved a last traded price of 531.70, highlighting its upward trajectory. Furthermore, the company exhibited remarkable annual revenue growth of 38.93%, surpassing its three-year compound annual growth rate (CAGR) of 13.54%. Notably, the company boasts ample cash reserves, providing it with the necessary resources to address any contingent liabilities.

Buzz

Tata Motors shares surged by 4% to an over six-year high of Rs 537.15 on Monday, following the company’s Q4FY23 earnings report, which exceeded expectations. The company reported a consolidated net profit of Rs 5,408 crore, buoyed by a revival in Jaguar Land Rover (JLR) volumes and robust growth in the Indian market. This is a significant improvement compared to the same quarter last year, where the company posted a loss of Rs 1,033 crore.

The YoY consolidated revenue of Tata Motors increased by 35.1%, reaching Rs 1.06 trillion. The reported ebitda margin, which stands for earnings before interest, taxes, depreciation, and amortization, improved by 210 bps, reaching 13.3%. Additionally, the net debt of the India business was the lowest it has been in 15 years, at Rs 6,200 crore.

The global oil benchmark, Brent crude, experienced a modest ascent of 0.24%, reaching a price of $74.34 per barrel.

On Monday, the Indian rupee depreciated by 15 paise, settling at 82.33 against the US currency. This decline was influenced by the robust performance of the American currency in the international market.

Advance Decline Ratio

Today, the advance-decline ratio was 1.18, and the market breadth was positive. The volatility index India Vix increased by 2.48 percent to settle at 13.17 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1242
Decliners – 1049
52Wk High –  92
52Wk Low – 17
High Band Hitters – 60
Low Band Hitters – 61
200d SMA – 17754
50d SMA – 17599
20d SMA – 17998

Top Gainers and Losers Stocks

The top gainers were Hero MotoCorp (+3.04%), Tata Motors (+2.83%), ITC (+1.89%), Tech Mahindra (+1.58%), and Hindalco (+1.49%).

The top losers were Adani Enterprises (-2.78%), Cipla (-1.71%), BPCL (-1.38%), Grasim (-1.28%), and Divi’s Laboratories (-1.18%).

Top Gainers and Losers Sector

The top gainers sectors were Realty (+4.32%), Media (+2.06%), FMCG (+1.14%), Auto (+0.70%), and Financial Services (+0.39%).

The Nifty Midcap 50 was up by 0.98 percent, while the Nifty Small Cap 50 was up by 0.89 percent on the day.

The Nifty Midcap 50 index currently closed at 9,239.25, while the Nifty Small Cap 50 index currently closed at 4,496.90.

SECTORS – NOTABLE ACTION
REALTY +4.32%
MEDIA +2.06%
FMCG +1.14%

Stocks Ban List

(SEBI) F&O ban list  (GNFC open at -623.85 and close at +635.65), (DELTACORP open at +219.00 and close at +223.95), (PNB open at -48.50 and close at +48.95), (BHEL open at -80.95 and close at -80.45), (CANBK open at -298.80 and close at +303.40), and (MANAPPURAM open at -112.45 and close at +110.15) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned GNFC, DELTACORP, PNB, BHEL, CANBK, and MANAPPURAM from trading in the futures and options (F&O) segment of 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.

It seems that IBULHSGFIN, BALRAMCHIN, L&TFH, INDIACEM, and ZEEL, and may be at risk of being added to the ban list.

BHEL, CANBK and MANAPPURAM has the possibilites of exit from ban list.

Daily Pivots

As per the above pivots data, 18300 to 18490 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Flat Ending to Volatile Session in Markets
Nifty50 Resilient, Overcomes Selling Pressure
Volatility Persists, but Nifty Ends on a High Note at 18,315 Mark

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