Last-Hour Profit Booking Dampens Gains, Despite Indian Market’s Strong Recovery

At the close, the Nifty 50 was at 22,570.35 up by 0.75%

In today’s trading session, the NSE Nifty 50 index displayed resilience as it rebounded from early losses to close in the green, marking a fifth consecutive session of gains. Despite opening lower due to weak global cues, the market witnessed a sharp recovery in the second half, driven by buying across sectors.

The Nifty 50 index closed at 22,570.35, up by 167.95 points or 0.75%, surpassing the crucial 22,550 level. The day saw extreme volatility, with a swift recovery after the initial dip followed by profit booking in the last hour. Notably, banking stocks, especially those in the public sector, led the market’s turnaround.

Despite weak cues from global peers, Indian equities showed resilience, staging a smart recovery. The hourly momentum indicator has triggered a positive crossover, indicating a buy signal and suggesting that the positive momentum is likely to continue in the upcoming trading sessions.

On the technical front, the Nifty 50 formed a long bullish candlestick pattern on the daily charts, signaling significant buying activity during the day. This follows a series of small candles in the past three sessions, indicating a breakout after consolidation and a decisive climb above the 22,500 mark.

Overall, today’s trading session showcased the market’s ability to withstand external pressures and capitalize on domestic strengths, paving the way for further upside potential in the near term

Bank Nifty: Up by 0.63%

The Bank Nifty opening in the red but making a commendable recovery to end the day with a 0.63% increase, closing at 48,494.95. Similarly, the BSE Sensex mirrored this upward trend, rising by 0.66% and concluding at a high of 74,339.44.

Despite the initial setback indicated by the red opening, both indices displayed resilience and surged into positive territory as the trading day progressed.

In the sectorial front, the pharmaceutical sector has demonstrated robust performance, witnessing a notable increase of 1.57%. Notably, Dr. Reddy’s Laboratories Ltd. surged impressively by 5.03%, showcasing strong market traction. Additionally, Alkem Laboratories Ltd. exhibited a commendable growth of 2.95%, further reinforcing the sector’s positive momentum.

Conversely, the Consumer Durables sector experienced a decline, registering a decrease of 0.43%. Among the top performers in this segment, Whirlpool Of India Ltd. encountered a notable decrease of -2.34%, while Titan Company Ltd. observed a dip of -1.10%.

Foreign Institutional Investors (FII/FPI) exhibited net selling activity, with a sale value exceeding the buy value by Rs. 2,823.33 crore. FII/FPI transactions reported a buy value of Rs. 19,378.28 crore and a sale value of Rs. 22,201.61 crore, indicating a negative net value.

On the other hand, Domestic Institutional Investors (DII) showcased robust buying activity, recording a significant net value of Rs. 6,167.56 crore. DIIs registered a buy value of Rs. 19,088.02 crore, surpassing the sale value of Rs. 12,920.46 crore.

Bank Nifty

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

The gainers included Axis Bank with a 6.04% increase, State Bank of India with a 5.03% increase, Bank of Baroda with a 3.67% increase, Punjab National Bank with a 2.03% increase, and Federal Bank with a 1.53% increase. On the other hand, the biggest losers in the sector included Kotak Bank with a 10.73% decline, and AU Bank with a 1.58% decline. These results suggest that most of the banking stocks performed better for the day.

Rupee Inches Up Against US Dollar Amidst Mixed Market Sentiment

The Indian rupee saw marginal movement against the US dollar on Thursday, gaining 1 paisa to close at 83.32. The slight uptick was supported by positive domestic equities but offset by continued selling pressure from foreign funds, which contributed to capital outflows.

Despite these challenges, the rupee found some support from a soft US dollar against major currencies globally. At the interbank foreign exchange market, the rupee opened at 83.34 against the greenback, maintaining a narrow range throughout the trading session. It reached an intra-day high of 83.31 and a low of 83.40 before settling at 83.32, marginally higher than its previous close.

On Wednesday, the rupee experienced a narrow consolidation and closed 2 paise lower at 83.33 against the US dollar. Looking ahead, market analysts anticipate a slightly negative bias for the rupee due to the recovery in crude oil prices and mixed to weak trends in Asian and European markets. However, the rupee may find some support from a soft dollar, especially amidst easing geopolitical tensions in the Middle East.

Brent crude futures edged slightly higher to $88.06 per barrel, while the dollar index, measuring the greenback’s strength against a basket of currencies, declined by 0.24% to 105.60. These global factors are expected to influence the rupee’s trajectory in the coming sessions.

Stocks Highlights

Axis Bank Ltd.’s share price surged by 6.04%, reaching Rs 1,127.45 from its previous close of Rs 1,063.25. The bank reported a robust year-on-year (YoY) increase of 19.76% in advances, outperforming its 5-year compound annual growth rate (CAGR) of 11.38%. Additionally, the company allocated Rs 32,694.38 crore for investing activities, marking a YoY increase of 20.06%.

Investors are taking note of the bullish signs, with a 20-day moving average crossover signaling a buy. Historical data suggests an average price gain of 2.99% within 7 days following this signal over the past 5 years.

In contrast, Kotak Mahindra Bank Ltd. witnessed a decline of -10.73% in its share price, dropping to Rs 1,645.00 from its previous close of Rs 1,842.80. Despite a YoY increase of 17.94% in advances, surpassing its 5-year CAGR of 8.08%, the bank’s performance lags concerning intraday gains and cash from investing activities, reflecting a decrease of 4.82% YoY.

Moreover, Kotak Mahindra Bank’s stock returns over 3 years pale in comparison to the Nifty 100 index, highlighting underperformance against the broader market.

Advance Decline Ratio

Today, the advance-decline ratio was 1.19, and the market breadth was positive. The volatility index India Vix increased by 4.42 percent to settle at 10.73 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1389
Decliners – 1166
52Wk High – 136
52Wk Low – 11
High Band Hitters – 127
Low Band Hitters – 48
200d SMA – 20703
50d SMA – 22219
20d SMA – 22383

Top Gainers and Losers Stocks

The top gainers were Axis Bank (+6.04%), SBIN (+5.03%), Dr. Reddy (+5.03%), Nestle India (+2.47%), and Hero MotoCorp (+2.44%).

The top losers were Kotak Bank (-10.73%), LTIM (-1.90%), Hindustan Unilever (-1.13%), Titan (-1.10%), and SBI Life (-1.03%).

Top Gainers and Losers Sector

The top gainers sector were Pharma (+1.57%), Auto (+1.27%), Metal (+1.11%), Oil & Gas (+0.71%), and FMCG (+0.67%).

The top losers sector were Consumer Durables (-0.43%), and Realty (-0.25%).

SECTORS – NOTABLE ACTION
PHARMA +1.57%
AUTO +1.27%
METAL +1.11%
CONSUMER DURABLES -0.43%
REALTY -0.25%

Stocks Ban List

(SEBI) F&O ban list (SAIL open at +164.80 and close at +164.95), (ABFRL open at -260.00 and close at +265.00), and (HINDCOPPER open at +380.20 and close at +380.80) 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.

LICHSGFIN, OFSS, NATIONALUM, CANBK, GNFC, INDIACEM, BIOCON, TATACHEM, BANDHANBNK, MCX, and INDUSTOWER stocks has the possibilities of entrance in the ban list.

HINDCOPPER stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 22300 to 22750 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Stock Market Indices Close with Modest Gains Amid IT Stock Sell-Off
Last-Hour Selling Erases Day’s Gains, Indian Market Still Ends Higher
Indian Equities Rally Amidst Global Relief, Nifty Surpasses 22,300 Mark

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