Indian Stock Market Shows Resilience Despite Global Volatility

At the close, the Nifty 50 was at 22,198.35 up by 0.34%

The NSE Nifty 50 index displayed a mixed performance today, initially starting in the red but ultimately closing in the green with a 0.34% increase, surpassing the 22,150 mark. The market rebounded from recent losses, driven by buying activity in sectors such as Realty, Consumer Durables, IT, and Auto. Notably, the formation of a bullish engulfing pattern and the index’s consistent position above near-term moving averages suggest a positive trend, with bulls potentially maintaining control.

Despite global cues leading to market fluctuations, domestic sentiment received support from hopes of a ceasefire in the Israel-Hamas conflict and a decline in crude oil prices. However, mid and small-cap stocks underperformed, indicating lingering uncertainties. Investors are closely monitoring upcoming economic data, particularly US inflation figures, for insights into potential interest rate adjustments.

While the bullish engulfing pattern signals a potential bullish reversal, analysts remain cautious, citing the need for further confirmation before deeming it a significant turning point in the market trend. With volatility likely to persist, prudent decision-making and vigilance are paramount for investors navigating the Indian stock market landscape.

Bank Nifty: Up by 0.02%

Bank Nifty initiated with a downward trend, showing a slight increase of 0.02 percent before concluding positively at 46,588.05. Similarly, the BSE Sensex, reflecting market resilience, demonstrated a gain of 0.42 percent, achieving a closing high of 73,095.22. This upward momentum signifies a notable recovery from earlier market concerns, fostering a positive outlook among investors. Notably, the banking sector’s performance, as represented by the Bank Nifty, exhibited a commendable turnaround, contributing to overall market optimism.

In the sectorial front, the real estate sector has witnessed a notable surge, with an increase of 1.07% in recent trading sessions. Notably, Swan Energy Ltd. recorded a significant gain of 3.78%, followed closely by Macrotech Developers Ltd., which saw an uptick of 3.10%. Conversely, the oil and gas industry experienced a slight setback, with a decline of 0.73%. Adani Total Gas Ltd. and Indian Oil Corporation Ltd. are among the top losers, experiencing declines of -2.84% and -2.45%, respectively.

Foreign Institutional Investors (FIIs/FPIs) recorded a net value of -1,509.16 crore rupees in today’s trading, with a buy value of 16,400.68 crore rupees and a sale value of 17,909.84 crore rupees. Conversely, Domestic Institutional Investors (DIIs) showcased a contrasting trend, with a net value of 2,861.56 crore rupees. DIIs exhibited a buy value of 11,803.41 crore rupees, surpassing their sale value of 8,941.85 crore rupees.

Bank Nifty

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

The gainers included Federal Bank with a 1.75% increase, IndusInd Bank with a 1.74% increase, AU Bank with a 0.75% increase, ICICI Bank with a 0.69% increase, and Kotak Bank with a 0.11% increase. On the other hand, the biggest losers in the sector included State Bank of India with a 1.24% decline, Punjab National Bank with a 1.12% decline, IDFC First Bank with a 0.77% decline, Bandhan Bank with a 0.69% decline, and Axis Bank with a 0.44% decline. These results suggest that some of the banking stocks performed better for the day.

Rupee Holds Steady Amidst Mixed Market Sentiments

The Indian rupee showed resilience in recent trading sessions, maintaining stability against the US dollar despite fluctuating market conditions. Closing almost flat at 82.89 (pro) against the greenback, the rupee demonstrated steadiness amidst a scenario of restricted trade, influenced by factors such as foreign fund withdrawals and increased month-end demand for the dollar.

Despite these challenges, the rupee managed to resist a sharp decline, attributed partly to robust sentiment in the equity markets and a weaker dollar. Opening at 82.87 and touching a low of 82.90 during intra-day trade, the local currency eventually settled marginally lower at 82.89 (pro), down by 1 paisa from the previous closing.

The market observed minimal movement in the rupee, mirrored by a flat performance of the dollar index around 103.65. Investors remained cautious, monitoring domestic and global macroeconomic data releases scheduled for the week. Key indicators such as core durable orders and CB consumer confidence data were awaited, potentially influencing the dollar index and subsequent rupee movements.

As the dollar index edged lower by 0.12% to 103.62, Brent crude futures also saw a slight uptick, trading at $82.63 per barrel. Amidst these dynamics, market participants remain vigilant, navigating through evolving trends to make informed decisions in the currency and commodities markets.

Stocks Highlights

Tata Motors Ltd. Shows Strong Performance, Signals Favorable Outlook

Tata Motors Ltd. witnessed a notable increase in its share price, rising by 2.73% to Rs 962.55 from its previous close of Rs 936.95. This uptrend signals positive momentum for the company, further supported by its impressive annual revenue growth of 24.54%, outperforming its 3-year CAGR of 9.81%.

Furthermore, a buy signal has been indicated with a weekly stochastic crossover observed on the week ending Feb 23, 2024. Historical data shows an average price gain of 10.72% within 7 weeks following this signal over the past decade. Additionally, the company has effectively managed its expenses, allocating 2.96% of operating revenues towards interest expenses and 9.73% towards employee costs in the fiscal year ending Mar 31, 2023.

Hero MotoCorp Ltd. Faces Market Headwinds, Indicates Caution

In contrast, Hero MotoCorp Ltd. experienced a decline in its share price, decreasing by -1.69% to Rs 4,420.10 from its previous close of Rs 4,496.10. This downward trend highlights challenges in the market environment for the company.

Despite beating its 3-year revenue CAGR with an annual growth of 15.35%, surpassing 4.97%, a sell signal has emerged with a weekly stochastic crossover observed on the week ending Feb 23, 2024. Historical data reveals an average price decline of -5.04% within 7 weeks following this signal over the past decade. Moreover, the company has managed its expenses, allocating less than 1% of operating revenues towards interest expenses and 6.59% towards employee costs in the fiscal year ending Mar 31, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 0.60, and the market breadth was negative. The volatility index India Vix increased by 0.81 percent to settle at 15.73 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 947
Decliners – 1570
52Wk High –  125
52Wk Low – 10
High Band Hitters – 95
Low Band Hitters – 80
200d SMA – 20006
50d SMA – 21722
20d SMA – 21934

Top Gainers and Losers Stocks

The top gainers were Tata Motors (+2.73%), TCS (+2.49%), Power Grid (+1.81%), IndusInd Bank (+1.74%), and Sun Pharmaceutical (+1.45%).

The top losers were Hero MotoCorp (-1.69%), Bajaj Finance (-1.32%), SBIN (-1.24%), Bajaj Finserv (-1.20%), and Divi’s Laboratories (-1.04%).

Top Gainers and Losers Sector

The top gainers sector were Realty (+1.07%), Consumer Durables (+0.92%), IT (+0.72%), Auto (+0.71%), and Pharma (+0.57%).

The top losers sector were Oil & Gas (-0.73%), Media (-0.63%),  Financial Services (-0.32%), and FMCG (-0.02%).

SECTORS – NOTABLE ACTION
REALTY +1.07%
CONSUMER DURABLES +0.92%
IT +0.72%
OIL & GAS -0.73%
MEDIA -0.63%
FINANCIAL SERVICES -0.32%

Stocks Ban List

(SEBI) F&O ban list (ABFRL open at -225.70 and close at +228.90), (CANBK open at -579.30 and close at -571.90), (SAIL open at -124.50 and close at +125.35), (BALRAMCHIN open at -376.40 and close at +382.90), and (ZEEL open at -171.15 and close at +173.05) 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.

PNB, INDUSTOWER, BANDHANBNK, NMDC, NATIONALUM, GRANULES, IDEA, VEDL, BHEL, and IRCTC stocks has the possibilities of entrance in the ban list.

ZEEL stock have the possibility of exit from the ban list.

Daily Pivots

As per the above pivots data, 22050 to 22300 is the Nifty 50 trading range.

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Profit Booking Impact Benchmark Indices Experience a Dip on Monday
NSE Nifty 50 Sees Volatility Amid Cautionary Market Sentiment
Nifty 50’s Resilience Bouncing Back from Previous Losses

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