Market Soars as Festive Spirit Takes Hold, Gains Almost 1%

At the close, the Nifty 50 was at 19,411.75 up by 0.94%

The NSE Nifty 50 index commenced the day on a positive note, exhibiting robust gains of 0.94% before concluding in the green. The benchmark index surpassed the 19,400 mark, marking its third consecutive session of gains. The day began with a promising gap-up start, and the indices continued their upward trajectory, with the Nifty crossing the 19,400 milestone during the final trading hour. This rally was driven by widespread buying activity across sectors, except for PSU Banks, signifying a broad-based positive sentiment.

This strong start to the week reaffirms the recent market rebound, with gains of nearly 1% as all key sectors contributed to this upward movement. The broader indices closely mirrored the benchmark performance, further emphasizing the overall market strength.

Optimism remained prevalent due to soft US payroll data and the anticipation of a more moderate approach to monetary tightening by the Federal Reserve. These factors bolstered investor sentiment and contributed to the positive momentum.

A notable trend is the shift in investor sentiment towards domestic-oriented businesses, driven by robust festive demand. This strategic shift aligns with the belief that many of the challenges faced by the global economy are external in nature, making domestically-oriented businesses an attractive prospect in the current market landscape.

Bank Nifty: Up by 0.70%

The Indian stock market has recently witnessed remarkable gains, offering investors reasons for optimism. The Bank Nifty, symbolizing the banking sector, started on a positive note, rising by 0.70% and closing in the green at 43,619.40. Additionally, the BSE Sensex, a prominent benchmark index, displayed robust performance by surging 0.92% and closing at a significant high of 64,958.69.

Sectorial performance in the market has been intriguing, with the metal industry emerging as a clear winner, experiencing a substantial gain of 1.36%. Notably, Jindal Steel & Power Ltd. marked a remarkable increase of 4.64%, and Apl Apollo Tubes Ltd. closely followed with an impressive gain of 3.28%.

Conversely, the consumer durables sector faced challenges, declining by 0.34%. Whirlpool Of India Ltd. encountered a significant setback, with a loss of -3.37%, and Bata India Ltd. also experienced a dip, registering a loss of -1.35%.

In terms of investor activity, Foreign Institutional Investors (FIIs/FPIs) recorded net selling activity, with purchases totaling 7,741.97 crore rupees and sales amounting to 8,291.34 crore rupees, resulting in a net selling position of -549.37 crore rupees. In contrast, Domestic Institutional Investors (DIIs) were net buyers, with buy activities worth 8,311.28 crore rupees and sales totaling 7,715.58 crore rupees, resulting in a positive net value of 595.70 crore rupees for DIIs.

Bank Nifty

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

The gainers included Axis Bank with a 2.14% increase, ICICI Bank with a 1.47% increase, IndusInd Bank with a 1.29% increase, Federal Bank with a 1.08% increase, and AU Bank with a 0.81% increase. On the other hand, the biggest losers in the sector included Bank of Baroda with a 3.97% decline, State Bank of India with a 0.73% decline, and IDFC First Bank with a 0.06% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Indian Rupee Faces Mixed Sentiments Amidst Global Market Dynamics

The Indian rupee experienced a day of mixed fortunes, ultimately settling 2 paise lower at 83.22 against the US dollar. This downward shift was primarily attributed to the rising crude oil prices, which offset the initial gains that were supported by the positive performance of domestic equities.

Throughout the trading day, the local unit’s trajectory was marked by fluctuations. It opened at 83.17 against the greenback, reaching a low of 83.24 before eventually closing at 83.22, registering a slight loss of 2 paise from its previous close of 83.20.

A silver lining for the rupee was the positive trend in domestic equities, which provided support at lower levels, preventing more significant losses. Additionally, the rupee gained strength as the US dollar weakened following slower-than-expected job growth in the United States, an event that influenced global currency dynamics.

In the broader context, the dollar index, measuring the greenback’s strength against a basket of six major currencies, was trading 0.10% lower at 104.92. This change in the dollar’s performance further affected the rupee’s standing in the international forex market.

Amid these developments, it is essential for investors and traders to remain vigilant, as the rupee’s value remains subject to various domestic and global factors, including oil prices and international economic trends. Furthermore, global oil prices, with the benchmark Brent crude rising by 1.55% to $86.21 per barrel, are likely to continue influencing the rupee’s performance.

Buzzing

Divi’s Laboratories Ltd. witnessed a notable increase in its share price, rising by 5.12% from the previous close of Rs 3,350.70 to reach Rs 3,522.40. However, the company experienced a topline contraction, with sales declining by 10.6%. This marks the first instance of revenue contraction in the last three years. Interestingly, the company maintained a prudent financial approach, allocating less than 1% of its operating revenues to interest expenses and dedicating 12.55% to employee costs for the fiscal year ending on March 31, 2023.

Conversely, the State Bank of India observed a slight decline in its share price, decreasing by -0.73% from the previous close of Rs 578.15 to a last traded price of Rs 573.95. The bank displayed a commendable performance in managing its non-performing assets (NPAs), with both gross NPA% and Net NPA% continuously decreasing over the past four years to reach 2.78% and 0.67%, respectively. Additionally, the bank’s profit per employee showed an uptrend, experiencing a growth of 64.22% in the last year. The bank also reported a robust YoY increase of 16.96% in its advances, surpassing its 5-year CAGR of 7.97%.

Advance Decline Ratio

Today, the advance-decline ratio was 2.03, and the market breadth was positive. The volatility index India Vix increased by 2.04 percent to settle at 11.11 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1635
Decliners – 807
52Wk High –  129
52Wk Low – 13
High Band Hitters – 161
Low Band Hitters – 51
200d SMA – 18650
50d SMA – 19560
20d SMA – 19412

Top Gainers and Losers Stocks

The top gainers were Divi’s Laboratories (+5.12%), Eicher Motors (+2.62%), Hero MotoCorp (+2.61%), Axis Bank (+2.14%), and Larsen & Toubro (+2.08%).

The top losers were SBIN (-0.73%), Hindustan Unilever (-0.52%), Cipla (-0.26%), Tata Motors (-0.22%), and Titan (-0.14%).

Top Gainers and Losers Sector

The top gainers sector were Metal (+1.36%), Pharma (+1.28%), Oil & Gas (+1.28%), Realty (+1.20%), and Financial Services (+0.88%).

The top losers sectors were Consumer Durables (-0.34%).

SECTORS – NOTABLE ACTION
METAL +1.36%
PHARMA +1.28%
OIL & GAS +1.28%
CONSUMER DURABLES -0.34%

Stocks Ban List

(SEBI) F&O ban list (GNFC open at -699.50 and close at +701.95) 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, CHAMBLFERT and INDIACEM stocks has the possibilities of enterance in the ban list.

Daily Pivots

As per the above pivots data, 19320 to 19480 is the Nifty 50 trading range.

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