Market Continues Gains Despite Late-Day Selling

At the close, the Nifty 50 was at 19,765.20 up by 0.46%

The day’s trading session for the NSE Nifty 50 showcased resilience amidst initial challenges, commencing with a gap down but eventually concluding with a commendable 0.46% surge, closing above the significant 19,700 mark. The Indian benchmark indices navigated a volatile yet positive trajectory, marking a second consecutive session in the green. While the day began on a lower note, a robust recovery and sustained upward momentum characterized the trading pattern. However, last-hour selling slightly tempered the gains, introducing fluctuations into the overall session.

Investor sentiment remained upbeat as markets positively reacted to the softening US inflation figures. The momentum carried forward from the previous session, buoyed by lower-than-expected US inflation data, fostering hope for potential interest-rate adjustments by the US Federal Reserve, potentially earlier than anticipated. In sync with global trends, the Indian market sustained its upward movement.

The optimism derived from subdued US inflation and declining bond yields has instilled confidence in increased spending, particularly within the technology sector. This resurgence notably propelled IT stocks within the broader market. Market sentiment suggests a growing conviction that export-oriented segments such as IT and Pharma hold promise as frontrunners in the future economic landscape.

Moreover, the anticipated reduction in inflationary pressures is poised to benefit domestically focused staples and the consumer sector, opening doors for potential growth prospects in these segments. With global cues steering market direction, investors are closely monitoring sectors poised to capitalize on evolving economic dynamics. Industries like IT, Pharma, and consumer-focused sectors are notably positioned for potential gains in the foreseeable future.

Bank Nifty: Down by 0.09%

The day saw divergent movements in the Bank Nifty and BSE Sensex indices. The Bank Nifty, starting positively, showcased resilience but concluded in the red zone at 44,161.55, marking a marginal decline of 0.09%. Despite an optimistic start, fluctuations in the trading session led to a slight downturn by the closing bell. In contrast, the BSE Sensex portrayed an upward trajectory throughout the day. Starting on a positive note, it sustained momentum and closed in the green at 65,982.48, reflecting a notable rise of 0.47% from the opening level. The Sensex hit a high point, indicating the prevailing positive sentiment and maintaining a steady climb during trading hours.

In the sectorial front, the Information Technology (IT) sector witnessed significant growth, surging by 2.69%. Key players like Coforge Ltd. recorded a remarkable increase of 6.71%, while Mphasis Ltd. boasted a commendable gain of 4.23%, highlighting the sector’s robust performance.

Conversely, the Fast Moving Consumer Goods (FMCG) sector experienced a slight setback, registering a decrease of 0.15%. Tata Consumer Products Ltd. faced a decline of -0.98%, while Godrej Consumer Products Ltd. saw a marginal decrease of -0.76% within this domain. These marginal declines within the FMCG sector juxtaposed with the substantial gains in the thriving IT sector, depicting varied performances across sectors in today’s market landscape.

The Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) showed a strong participation in the market with a buy value of Rs. 13,546.39 crore and a sale value of Rs. 12,589.14 crore, resulting in a net value of Rs. 957.25 crore.

On the other hand, the Domestic Institutional Investors (DII) demonstrated active involvement as well, recording a buy value of Rs. 6,690.87 crore and a sale value of Rs. 5,985.22 crore, culminating in a net value of Rs. 705.65 crore.

Bank Nifty

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

The gainers included IDFC First Bank with a 2.07% increase, Punjab National Bank with a 1.01% increase, Bank of Baroda with a 0.40% increase, IndusInd Bank with a 0.38% increase, and AU Bank with a 0.36% increase. On the other hand, the biggest losers in the sector included Axis Bank with a 1.47% decline, ICICI Bank with a 0.65% decline, State Bank of India with a 0.10% decline, and Federal Bank with a 0.03% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Rupee Slides Marginally Against US Dollar Amid Market Dynamics

The Indian rupee witnessed a modest decline of 14 paise against the US dollar, settling at 83.23 (pro) due to prevalent foreign fund outflows and the resilient performance of the greenback in international markets. Despite this downturn, the rupee found some support in the form of diminishing crude oil prices, which aided in minimizing the extent of its fall.

Commencing lower at 83.18 against the US currency in the interbank foreign exchange market, the rupee sustained pressure throughout the day, fluctuating within a range of 83.17 to 83.25 before concluding at 83.23 (pro), indicating a 14 paise deficit compared to the previous close.

In contrast, on the preceding day, the rupee had exhibited strength, appreciating by 24 paise and closing at 83.09 against the US dollar. This upward trend was spurred by a retreat in the American currency’s dominance following lower-than-anticipated US inflation rates. However, the rupee experienced a setback as the dollar index rebounded from 103.90 to 104.30, causing a subsequent weakening.

The recent US retail sales data, depicting minor weaknesses, provided subtle indications suggesting a potential delay in further rate hikes by the Federal Reserve, impacting the currency markets.

Meanwhile, the global oil benchmark, Brent crude, underwent a marginal decline of 0.54%, settling at $80.74 a barrel, further influencing market sentiments and currency movements.

Buzzing

Hero MotoCorp Ltd.: The share price of Hero MotoCorp Ltd. saw a positive surge of 3.34%, reaching Rs 3,284.00 from its previous closing price of Rs 3,177.85. Notably, historical intraday data over the past 19 years indicates that only 1.39% of trading sessions exhibited intraday gains surpassing 5%. Furthermore, the company’s impressive annual revenue growth of 15.35% has outperformed its 3-year Compound Annual Growth Rate (CAGR) of 4.97%. The recent appearance of a 14-day moving crossover, a buy signal observed yesterday, historically resulted in an average price gain of 2.84% within 7 days, reflecting bullish market sentiment.

Axis Bank Ltd.: Conversely, Axis Bank Ltd. observed a decline of -1.47%, dropping to Rs 1,026.00 from its previous closing price of Rs 1,041.35. In the past 19 years, only 2.78% of trading sessions exhibited intraday gains exceeding 5%. Despite this, the bank showcased impressive growth metrics: a year-on-year increase in advances by 19.76%, surpassing its 5-year CAGR of 11.38%, and a robust annual revenue growth of 23.27%, outperforming its 3-year CAGR of 9.76%. Moreover, Axis Bank displayed consistent improvement in Gross NPA% and Net NPA%, declining to 2.02% and 0.39%, respectively, over the past 4 years, signifying a healthier loan portfolio.

Advance Decline Ratio

Today, the advance-decline ratio was 1.01, and the market breadth was positive. The volatility index India Vix increased by 4.60 percent to settle at 11.65 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1223
Decliners – 1216
52Wk High –  181
52Wk Low – 8
High Band Hitters – 118
Low Band Hitters – 49
200d SMA – 18701
50d SMA – 19585
20d SMA – 19334

Top Gainers and Losers Stocks

The top gainers were Hero MotoCorp (+3.34%), Tech Mahindra (+2.88%), HCL Technologies (+2.85%), TCS (+2.72%), and Infosys (+2.45%).

The top losers were Axis Bank (-1.47%), Coal India (-1.03%), Adani Enterprises (-1.01%), Tata Consumer (-0.98%), and ICICI Bank (-0.65%).

Top Gainers and Losers Sector

The top gainers sector were IT (+2.69%), Consumer Durables (+1.04%), Realty (+0.92%), Pharma (+0.87%), Auto (+0.84%).

The top losers sector were FMCG (-0.15%).

SECTORS – NOTABLE ACTION
IT +2.69%
CONSUMER DURABLES +1.04%
REALTY +0.92%
FMCG -0.15%

Stocks Ban List

(SEBI) F&O ban list (MCX open at +2915.00 and close at +2966.60), (HINDCOPPER open at -160.30 and close at -159.00), (ZEEL open at -248.85 and close at +250.05), (SAIL open at -88.65 and close at -88.00), (DELTACORP open at -141.10 and close at -140.00), and (IBULHSGFIN open at -180.30 and close at +186.50) 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.

INDIACEM, BHEL, NMDC, BIOCON, TATACHEM, HINDPETRO, PNB, GNFC, and BALRAMCHIN stocks has the possibilities of enterance in the ban list.

Daily Pivots

As per the above pivots data, 19610 to 19900 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Soars Over 19,600 in a Remarkable Comeback
Diwali Festivities and Mutual Fund Investments Boost Market Sentiment
Nifty Faces Resistance at 19,500 Amid Global Uncertainties

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