IT Stocks and Reliance Propel Indian Shares to 5-Month High

At the close, the Nifty 50 was at 18,499.35 up by 0.97%

Today, the National Stock Exchange (NSE) Nifty 50 commenced the trading session on a positive note, opening at a higher level. Throughout the day, it displayed a commendable performance, achieving a gain of 0.97 percent and ultimately concluding the day in the positive territory. The Nifty index settled near the mark of 18,500, reflecting a favorable market sentiment and indicating a bullish trend.

In the sectoral analysis, the Media sector outperformed others, exhibiting a gain of 2.24%. Within this sector, ZEE ENTERTAINMENT ENTERPRISES LIMITED recorded a significant gain of 6.57%, followed by NEW DELHI TELEVISION LIMITED with a gain of 4.99% and PVR INOX LIMITED with a gain of 3.28%.

The IT sector also displayed positive growth, recording a gain of 1.48%. Notable performers within this sector included COFORGE LIMITED with a gain of 3.53%, MPHASIS LIMITED with a gain of 2.18%, and HCL TECHNOLOGIES LIMITED with a gain of 1.97%. Overall, the remaining sectors concluded the day in the green.

During a period of consolidation, the index displayed a positive trend due to the recovery of the US markets and increased participation from the IT sector, which acted as a catalyst. Furthermore, the significant surge in heavyweights such as Reliance played a crucial role in the prevailing optimism. The Nifty index has successfully surpassed the critical level of 18,400, and the focus now shifts towards testing the 18,700 mark in the near future. Traders are advised to align their positions accordingly, taking into account the current market conditions.

Bank Nifty: Up by 0.77%

The Bank Nifty initiated the trading session on a positive note, witnessing a gain of 0.77 percent and ultimately concluding in the green, reaching a closing value of 44,018.00. In a similar manner, the BSE Sensex displayed a remarkable performance, recording a rise of 1.02 percent and closing in the green at a significant level of 62,501.69.

The Bank Nifty index has seen a strong resurgence of bulls, effectively overpowering the bears. The market has been flooded with buyers, indicating a prevailing bullish sentiment. If the index can maintain its position above the critical level of 44,000, it is poised for further upward movement, potentially reaching the 45,000 mark.

Additionally, the momentum indicator RSI has confirmed a positive crossover, providing further support to the buy signal. Traders and investors are advised to closely monitor the index, paying attention to sustained strength above 44,000. Based on the bullish momentum and observed buying activity, there is potential for continued upward movement in the index. It is important to remain vigilant and make informed decisions based on market trends and indicators.

Bank Nifty

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

The gainers included IDFC First Bank with a 2.43% increase, Federal Bank with a 1.62% increase, Punjab National Bank with a 1.41% increase, ICICI Bank with a 1.13% increase and Bank of Baroda with a 0.85% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 1.31% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

Reliance Industries Ltd. observed a positive movement in its share price, experiencing a 2.82% increase from its previous closing value of Rs 2,439.95. The stock of Reliance Industries Ltd. last traded at a price of 2,508.80. Over a three-year period, the stock exhibited a return of 71.34%, while the Nifty 100 index recorded a return of 96.93%. On May 24, 2023, a 14-day moving crossover signal emerged.

Within the last five years, this signal has resulted in an average price decline of -2.91% within a seven-day period. The company’s annual revenue growth of 26.56% surpassed its three-year compound annual growth rate (CAGR) of 13.85%. Remarkably, only 1.03% of the trading sessions in the past 18 years witnessed intraday declines higher than 5%.

The share price of Oil And Natural Gas Corporation Ltd. witnessed a decline of -1.20% from its previous closing value of Rs 166.00. The stock of Oil And Natural Gas Corporation Ltd. last traded at a price of 164.00. Over a three-year period, the stock displayed a remarkable return of 115.58%, outperforming the Nifty 100 index which recorded a return of 96.93%. On May 24, 2023, a 10-day moving crossover signal emerged. Over the past five years, this signal has resulted in an average price gain of 3.41% within a seven-day period.

Buzz

The Securities and Exchange Board of India (SEBI), the country’s market regulator, has introduced proposed rules that shift the burden of proof onto the accused in specific instances of insider trading, front running, and comparable infractions. This move comes in response to challenges faced by the watchdog due to the use of encrypted or disappearing communication methods and untraceable funding arrangements, which hinder its ability to effectively investigate and successfully prosecute such cases.

Under the proposed rules, any trading activity displaying an unusual pattern, characterized by a significant alteration in risk or abnormal profits, coinciding with the possession of material non-public information about a security, will be deemed suspicious unless the accused party can provide compelling evidence to refute the allegations.

Advance Decline Ratio

Today, the advance-decline ratio was 1.30, and the market breadth was positive. The volatility index India Vix decreased by 4.95 percent to settle at 11.90 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1276
Decliners – 984
52Wk High –  100
52Wk Low – 10
High Band Hitters – 62
Low Band Hitters – 33
200d SMA – 17821
50d SMA – 17739
20d SMA – 18253

Top Gainers and Losers Stocks

The top gainers were Reliance (+2.82%), Sun Pharmaceutical (+2.32%), Hindalco (+2.18%), Hindustan Unilever (+2.11%), and HCL Technologies (+1.97%).

The top losers were ONGC (-1.20%), Grasim (-0.96%), Bajaj Auto (-0.62%), Bharti Airtel (-0.60%), and Power Grid (-0.40%).

Top Gainers and Losers Sector

The top gainers sectors were Media (+2.24%), IT (+1.48%), FMCG (+1.47%), Realty (+1.25%), and Pharma (+1.17%).

The Nifty Midcap 50 was up by 1.04 percent, while the Nifty Small Cap 50 was up by 0.97 percent on the day.

The Nifty Midcap 50 index currently closed at 9,428.60, while the Nifty Small Cap 50 index currently closed at 4,545.20.

SECTORS – NOTABLE ACTION
MEDIA +2.24%
IT +1.48%
FMCG +1.47%

Stocks Ban List

Today, the Securities and Exchange Board of India (SEBI) has not included any stock in the ban list for Futures and Options (F&O) trading.

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.

Daily Pivots

As per the above pivots data, 18380 to 18570 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Concludes May F&O Series Above 18,300
Indian Equity Market Ends Lower: Volatility Persists
Market Concludes with Modest Gains amidst Late Selling Pressure

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