Market Soars on Positive Global Cues and Sector-Wide Buying

At the close, the Nifty 50 was at 19,811.50 up by 0.40%

In a remarkable display of resilience, the financial markets staged a comeback, eliminating losses from the previous session and closing on a positive note. The NSE Nifty 50 started the day strong, posting a 0.40% increase and closing in the green, with the Nifty surpassing the 19,800 mark. This resurgence was primarily fueled by optimistic global cues.

Despite concerns about the Middle East situation and a somewhat lackluster performance in the IT sector, today’s strong opening exemplified the market’s confidence in ongoing Q2 earnings.

The upward trend was broad-based, with significant gains in the Banking, Oil & Gas, and FMCG sectors. However, some profit-taking occurred as the trading day neared its end. Foreign Institutional Investors (FIIs) continued to withdraw funds, mainly due to the rise in US bond yields.

Looking forward, all eyes are on the upcoming speech by the Fed chair on October 19th, which is expected to offer insights into the future direction of interest rates. Additionally, market observers remain vigilant regarding the Israel-Hamas conflict, with a prevailing consensus that geopolitical risks are not likely to escalate in the immediate future. These factors, along with global trends, will continue to shape market dynamics in the days ahead.

Bank Nifty: Up by 0.42%

The Bank Nifty had an optimistic start to the day with a gap-up opening, although it faced some intraday turbulence, eventually closing in positive territory with a 0.42% increase, concluding at 44,409.50. This underlines the sector’s resilience, demonstrating its ability to withstand short-term fluctuations.

The BSE Sensex followed a similar trajectory, posting a 0.39% gain and ending the day in the green at a high of 66,428.09. The Sensex’s upward momentum mirrors the overall positive sentiment prevailing in the market.

Regarding sectorial performance, the Oil & Gas sector exhibited a noteworthy surge, experiencing a recent increase of 0.72%. Notably, Oil India Ltd. recorded an impressive 3.80% gain, and Bharat Petroleum Corporation Ltd. achieved a commendable increase of 2.17%.

In contrast, the Consumer Durables sector faced a minor setback, with a 0.02% decline. Havells India Ltd. saw a notable decrease of -2.25%, and Whirlpool Of India Ltd. witnessed a dip of -1.34%.

Foreign Institutional Investors (FII/FPI) actively participated in the market, acquiring assets with a total value of Rs. 8,517.96 crore and divesting assets worth Rs. 8,254.28 crore, resulting in a net investment value of Rs. 263.68 crore.

On the domestic front, Domestic Institutional Investors (DII) were also engaged in the market. They made purchases totaling Rs. 6,492.43 crore and sold assets valued at Rs. 6,379.88 crore, resulting in a net investment value of Rs. 112.55 crore.

Bank Nifty

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

The gainers included Kotak Bank with a 1.43% increase, Punjab National Bank with a 0.86% increase, HDFC Bank with a 0.84% increase, IDFC First Bank with a 0.71% increase, and Bank of Baroda with a 0.56% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 1.62% decline, IndusInd Bank with a 0.86% decline, AU Bank with a 0.27% decline, and Federal Bank with a 0.13% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Rupee Strengthens Amidst Domestic Positivity

In a dynamic forex market, the Indian Rupee demonstrated resilience by consolidating within a narrow range and closing the day 3 paise higher at 83.24 (pro) against the US dollar. This uptick can be attributed to a positive trend in domestic equities, which instilled confidence in investors.

While the rupee is trading with a slight positive bias, it’s essential to note that a robust US dollar and concerns regarding the ongoing Middle East conflict have somewhat limited the extent of these gains. This delicate balancing act is a testament to the intricacies of the global currency market.

In the interbank foreign exchange market, the rupee opened at 83.24 against the US dollar, oscillating within the range of 83.22 to 83.26 throughout the day. The final settlement at 83.24 (pro) reflects the currency’s underlying strength.

It’s worth mentioning that selling pressure from Foreign Institutional Investors (FIIs) and RBI’s dollar/rupee swap transactions may exert pressure on the rupee at higher levels. Traders are advised to monitor US retail sales and industrial production data for directional cues. The USD-INR spot price is anticipated to maintain a trading range of ₹82.90 to ₹83.70.

In the realm of commodities, Brent crude futures, the global oil benchmark, witnessed a 0.41% increase, reaching $90.02 per barrel, indicating an evolving landscape in the energy market.

Buzzing

Bharat Petroleum Corporation Ltd. witnessed a notable upswing, with its share price rising by 2.17% from its previous closing price of Rs 347.25. The stock last traded at Rs 354.80, and a 20-day moving average crossover was observed recently. It’s worth noting that, historically, there has been an average price decline of -2.79% within 7 days of this signal over the last 5 years. Additionally, only 1.8% of trading sessions in the past 18 years have experienced intraday declines exceeding 5%, highlighting the stock’s stability.

In contrast, Larsen & Toubro Ltd. experienced a modest decrease in its share price, down by -1.09% from its previous closing price of Rs 3,101.90, with the stock last trading at Rs 3,068.00. Notably, historical data shows that only 1.37% of trading sessions in the last 18 years have witnessed intraday gains surpassing 5%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.60, and the market breadth was positive. The volatility index India Vix decreased by 3.38 percent to settle at 10.70 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1480
Decliners – 926
52Wk High –  159
52Wk Low – 8
High Band Hitters – 140
Low Band Hitters – 37
200d SMA – 18572
50d SMA – 19620
20d SMA – 19697

Top Gainers and Losers Stocks

The top gainers were BPCL (+2.17%), Power Grid (+2.07%), Coal India (+1.76%), SBI Life (+1.75%), and HDFC Life  (+1.74%).

The top losers were Tata Motors (-1.53%), Larsen & Toubro (-1.09%), UPL (-0.89%), IndusInd Bank (-0.86%), and TCS (-0.43%).

Top Gainers and Losers Sector

The top gainers sector were Oil & Gas (+0.72%), Financial Services (+0.65%), FMCG (+0.50%), Pharma (+0.31%), and Metal (+0.28%).

The top losers sector were Consumer Durables (-0.02%).

SECTORS – NOTABLE ACTION
OIL & GAS +0.72%
FINANCIAL SERVICES +0.65%
FMCG +0.50%
CONSUMER DURABLES -0.02%

Stocks Ban List

(SEBI) F&O ban list (GNFC open at +671.70 and close at -652.60), (MCX open at +2200.00 and close at -2194.65), (BALRAMCHIN open at +423.00 and close at -421.55), (DELTACORP open at -128.05 and close at +130.35), (SAIL open at +89.70 and close at +89.50), (BHEL open at +131.90 and close at +132.45), (INDIACEM open at -220.80 and close at +221.80), (IBULHSGFIN open at +173.00 and close at +173.60), (HINDCOPPER open at +161.80 and close at -158.45), (SUNTV open at +644.90 and close at -642.45), (MANAPPURAM open at -145.25 and close at -143.10), and (PNB open at +75.75 and close at +75.80) 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.

METROPOLIS, NMDC, CHAMBLFERT, RBLBANK, and ESCORTS stock has the possibilities of enterance in the ban list.

SUNTV, MANAPPURAM, and PNB stock has the possiblities of exit from ban list.

Daily Pivots

As per the above pivots data, 19760 to 19860 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty’s Flat Opening and Narrow Consolidation A Marginal Red Finish
Selling Pressure Hits Market as IT Giants See Lower Demand
Tech Stocks Tumble Nifty’s Impressive Run Meets a Roadblock

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