Indian Equity Hits New Highs in Volatile Session

At the close, the Nifty 50 was at 20,997.10 up by 0.13%

The trading day commenced on a positive note for the NSE Nifty 50, showcasing a promising 0.13% surge and ultimately culminating on a high trajectory. Notably, the index soared to an unprecedented high of 21,000, propelled by robust investments in diverse sectors, excluding Pharma, which displayed a relatively subdued performance.

Closing at 20,997.10, a modest uptick of 27.70 points denoted the conclusion of a rangebound trading session. Sectors like PSU Banks and Media stood out as frontrunners, significantly contributing to the prevailing buoyant market sentiment. Moreover, an upsurge in trading volumes was particularly discernible in Railway stocks, indicative of multifaceted investor interests.

Despite the market’s oscillating nature, a robust market breadth underscored a keen interest in broader markets, leading to the outperformance of Mid and Smallcap indices. However, apprehension loomed amidst expectations of a potential uptick in domestic inflation, in contrast to the envisaged stability in US inflation rates. This sentiment was further reinforced by profit booking activities subsequent to favorable US job data and moderate escalations in US bond yields.

Global and domestic factors continue to bolster the current market rally, notwithstanding concerns about lofty valuations. Factors such as ascending FIIs investment, strong DII inflows, active participation of retail investors, and a thriving IPO market, buoyed by robust economic fundamentals, fortify the momentum of the short-term market rally.

The RBI’s sanguine stance, projecting a conservative 7% GDP growth estimate for FY24, serves as a testament to the economy’s upward trajectory, bolstering confidence amidst the fluctuating market landscape. These collective indicators portray a resilient market, poised for sustained growth in the foreseeable future.

Bank Nifty: Up by 0.11%

Financial Landscape Witnesses Incremental Gains Despite Cautious Investor Sentiments

Commencing the trading session on a positive trajectory, both the Bank Nifty and BSE Sensex exhibited marginal increments, with the Bank Nifty rising by 0.11% and the BSE Sensex marking a 0.15% upsurge. The day culminated with the indices settling at 47,314.25 and 69,928.53, reflecting a favorable trend in the financial sphere.

Despite breaching significant thresholds—most notably, the BSE Sensex surpassing the 70,000 mark—traders remained cautiously optimistic. The broader market outperformed the main indices, although profit booking activities at higher levels indicated a guarded approach among investors.

In the sectoral domain, Media emerged as a notable gainer, experiencing a significant surge of 1.28%. Specific entities within the sector, such as Hathway Cable & Datacom Ltd. with a substantial 4.58% increase and D.B.Corp Ltd. showcasing a commendable gain of 4.07%, contributed to this growth. Conversely, the Pharma sector depicted a downturn of 0.76%, notably observed in leading companies like Dr. Reddy’s Laboratories Ltd. (-5.00%) and Aurobindo Pharma Ltd. (-1.28%).

The Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) exhibited a positive trend in their activities, showcasing a buy value of Rs. 10,710.66 crore and a sale value of Rs. 9,449.53 crore. Consequently, this resulted in a net value of Rs. 1,261.13 crore in favor of purchases during the specified period.

Contrarily, Domestic Institutional Investors (DII) showcased a different trend, with a buy value amounting to Rs. 8,298.69 crore and a sale value of Rs. 9,331.61 crore. This led to a net value of -Rs. 1,032.92 crore, indicating a net selling position by the DIIs during this period.

Bank Nifty

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

The gainers included Punjab National Bank with a 2.08% increase, Bank of Baroda with a 1.42% increase, IndusInd Bank with a 0.88% increase, ICICI Bank with a 0.45% increase, and Kotak Bank with a 0.41% increase. On the other hand, the biggest losers in the sector included Axis Bank with a 1.43% decline, IDFC First Bank with a 0.68% decline, AU Bank with a 0.20% decline, HDFC Bank with a 0.19% decline, and Federal Bank with a 0.16% decline. These results suggest that some banking stocks performed better for the day.

Rupee Remains Steady Against US Dollar at 83.39, Investors Await Federal Reserve Decision

The Indian rupee held its ground against the US dollar, settling marginally lower at 83.39 (pro) on Monday, reflecting a subdued stance as investors adopted a cautious approach ahead of the Federal Reserve Meeting. Despite a bullish equity market and continuous foreign fund inflows, investor sentiment failed to witness a significant boost.

Interbank Exchange Dynamics: Rupee’s Movement At the interbank foreign exchange market, the rupee commenced trading at 83.39 against the dollar, touching an intraday high of 83.37 before ultimately closing at 83.39 (pro), merely 1 paisa lower than its previous close. This modest fluctuation follows Friday’s marginal 4-paise dip, ending at 83.40 against the US dollar.

Global Market Indicators While the rupee held its position, the dollar index, indicating the dollar’s strength against major currencies, slightly rose by 0.04% to 103.67. Additionally, Brent crude futures, a key global oil benchmark, experienced a 0.41% increase, reaching $75.53 per barrel, signifying potential shifts in the energy market.

Anticipated Federal Reserve Decision The impending monetary policy announcement by the US Federal Reserve later this week keeps market players on edge, as its decision could trigger substantial movements in currency markets. The outcome might significantly impact investor strategies, guiding market sentiments and influencing the rupee’s trajectory against the US dollar in the coming sessions.

Stocks Highlights

Bullish Momentum and Strong Revenue Growth UltraTech Cement Ltd. witnessed a significant surge in share price, rising by 3.19% from its previous close of Rs 9,413.55 to Rs 9,714.10. This uptrend was further bolstered by a positive buy signal, indicating a bullish trend with a weekly stochastic crossover evident on the week ending December 08, 2023. Historical data reveals an average price gain of 6.89% within seven weeks following such signals over the last decade, signaling an encouraging trajectory for investors.

The company’s financial performance remains robust, showcasing impressive annual revenue growth of 20.03%, surpassing its three-year Compound Annual Growth Rate (CAGR) of 13.8%. Moreover, expenditure allocation reflects prudent financial management, with a mere 1.3% directed towards interest expenses and 4.33% allocated to employee costs in the fiscal year ending March 31, 2023.

Conversely, Price Downturn Amidst Strong Financial Metrics Dr. Reddy’s Laboratories Ltd. experienced a -5.00% decline in share price from its previous close of Rs 5,763.90 to Rs 5,475.70. Despite this setback, the company maintains a commendable annual revenue growth of 16.78%, surpassing its three-year CAGR of 12.22%. Furthermore, its Return on Equity (ROE) surged to 19.35% in the fiscal year ending March 31, 2023, outperforming the five-year average of 14.06%.

In terms of expenditure, the company exhibits efficient financial practices, with less than 1% directed towards interest expenses and 18.84% allocated towards employee costs in the fiscal year ending March 31, 2023. While the recent price decline may concern investors, the company’s strong financial indicators and operational efficiency could potentially signify an attractive long-term investment opportunity.

Advance Decline Ratio

Today, the advance-decline ratio was 1.41, and the market breadth was positive. The volatility index India Vix increased by 2.30 percent to settle at 12.76 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1473
Decliners – 1042
52Wk High –  189
52Wk Low – 13
High Band Hitters – 147
Low Band Hitters – 42
200d SMA – 18898
50d SMA – 19724
20d SMA – 20133

Top Gainers and Losers Stocks

The top gainers were UltraTech Cement (+3.19%), UPL (+3.04%), Adani Enterprises (+1.41%), Nestle India (+1.26%), and Power Grid (+1.25%).

The top losers were Dr. Reddy (-5.00%), Axis Bank (-1.43%), Cipla (-1.24%), Eicher Motors (-1.06%), and M&M (-0.99%).

Top Gainers and Losers Sector

The top gainers sector were Media (+1.28%), Metal (+1.04%), Realty (+0.85%), FMCG (+0.63%), and Consumer Durables (+0.58%).

The top losers sector were Pharma (-0.76%).

SECTORS – NOTABLE ACTION
MEDIA +1.28%
METAL +1.04%
REALTY+0.85%
PHARMA -0.76%

Stocks Ban List

(SEBI) F&O ban list (BALRAMCHIN open at -394.05 and close at -397.00), (HINDCOPPER open at +186.35 and close at -182.85), (SAIL open at -98.10 and close at +100.80), (NATIONALUM open at -97.90 and close at +98.00), (IBULHSGFIN open at -201.80 and close at -199.60), (DELTACORP open at -138.00 and close at -136.90), and (ZEEL open at +280.10 and close at +285.90) 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.

MANAPPURAM, RBLBANK, ASHOKLEY, GMRINFRA, ABCAPITAL, and TATACHEM stocks has the possibilities of enterance in the ban list.

ZEEL stock has the possibilites of exit from the ban list.

Daily Pivots

As per the above pivots data, 20900 to 21100 is the Nifty 50 trading range.

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