|Nifty MidCap 50||11,543.70||+89.80||+0.78%|
|Nifty SmallCap 50||5,921.40||+28.95||+0.49%|
At the close, the Nifty 50 was at 19,653.50 up by 0.55%
The recent policy decision by the Reserve Bank of India (RBI) has significantly influenced the Indian financial markets, resulting in favorable responses from benchmark indices. Notably, the NSE Nifty 50 exhibited strong performance, commencing on a positive note and concluding with a 0.55 percent gain, surpassing the 19,650 mark. This represents the second consecutive session of gains, indicative of investor confidence.
A pivotal aspect of the RBI’s monetary policy committee (MPC) decision was the steadfast maintenance of the key lending repo rate at 6.5 percent for the fourth consecutive time. This decision is in alignment with the RBI’s commitment to managing inflation, a crucial component of their monetary policy framework.
The RBI’s cautious approach is rooted in concerns regarding escalating inflation, compelling them to adopt a pragmatic stance towards liquidity management. The prospect of implementing open market operations (OMO) to regulate liquidity levels in the financial system is under consideration, which has led to a marginal uptick in India’s 10-year yield.
Despite these measures and the persisting challenges, the market’s response has been positive, largely attributable to the stability of the growth rate and the decline in oil prices. Investors are closely monitoring the RBI’s ongoing strategies to navigate these economic hurdles, recognizing their pivotal role in shaping the future performance of Indian markets
Bank Nifty: Up by 0.33%
In the latest trading session, the Indian stock market exhibited notable resilience, with both the Bank Nifty and BSE Sensex delivering positive performances. The Bank Nifty, representing the banking sector, opened on a positive note and sustained its upward trajectory throughout the day, concluding at 44,360.60, with a 0.33 percent gain. Similarly, the broader BSE Sensex index displayed strong performance, registering a 0.55 percent increase and closing at a high of 65,995.63.
Bank Nifty’s performance was characterized by a noteworthy gap-up opening, followed by consolidation for the majority of the trading day. Particularly noteworthy were the clear indications of positive divergence and a crossover on the hourly momentum indicator, both of which are considered bullish signals. These technical indicators suggest growing investor optimism regarding the prospects of the banking sector.
In terms of sectorial performance, realty stocks surged, recording a substantial gain of 3.08%. Within this sector, Godrej Properties Ltd. exhibited remarkable strength, posting a gain of 4.54%, closely followed by Swan Energy Ltd. with a gain of 4.49%.
On the other hand, the media sector encountered challenges, emerging as the top loser with a marginal decline of 0.02%. Within this sector, Hathway Cable & Datacom Ltd. experienced a notable loss of -1.90%, while D.B.Corp Ltd. also faced a downturn with a loss of -1.67%.
Foreign Institutional Investors/Foreign Portfolio Investors (FIIs/FPIs) recorded a Buy Value of Rs. 6,727.34 crores and a Sale Value of Rs. 6,817.63 crores, resulting in a Net Value of -Rs. 90.29 crores. This negative net value indicates that FIIs/FPIs were net sellers during the trading session.
Conversely, Domestic Institutional Investors (DIIs) displayed a Buy Value of Rs. 7,150.57 crores and a Sale Value of Rs. 6,367.32 crores, resulting in a positive Net Value of Rs. 783.25 crores. This positive net value signifies that DIIs were net buyers during the trading session.
The Nifty Banking sector had some gainers and some losers for the day.
The gainers included IndusInd Bank with a 2.23% increase, Bandhan Bank with a 1.30% increase, Bank of Baroda with a 1.15% increase, Federal Bank with a 0.82% increase, and Kotak Bank with a 0.56% increase. On the other hand, the biggest losers in the sector included Punjab National Bank with a 0.65% decline, IDFC First Bank with a 0.54% decline, AU Bank with a 0.20% decline, and HDFC Bank with a 0.05% decline. These results suggest that some banking stocks performed better for the day.
Rupee Appreciates Slightly Amidst Stable RBI Monetary Policy
In the backdrop of the Reserve Bank of India’s (RBI) steady monetary policy stance, the Indian rupee exhibited a modest appreciation, strengthening by 4 paise to settle at 83.21 (pro) against the US dollar on Friday. This gain in the rupee’s value was driven by positive sentiment in the equity markets, as the RBI maintained its benchmark repurchase rate (repo) at 6.50 percent for the fourth consecutive policy review.
Despite the rupee’s gains, it faced resistance due to selling pressure from foreign equity investors, who were influenced by the elevated levels of the greenback. This external factor somewhat constrained the local currency’s upward movement.
At the interbank foreign exchange, the rupee commenced trading at 83.21 against the US dollar, reaching a high of 83.28 and a low of 83.18 during the trading session. Ultimately, it settled at 83.21 (pro), marking a marginal improvement compared to the previous day’s closing level of 83.25.
The unanimous decision by the six-member monetary policy committee of the RBI to maintain the repo rate at 6.50 percent aligns with the central bank’s commitment to achieving its medium-term inflation target of 4 percent. This stability in monetary policy has contributed to the rupee’s appreciation in the current market scenario.
Bajaj Finserv Ltd. witnessed a notable upswing in its share price, surging by 5.60% from its previous close of Rs 1,542.55 to reach Rs 1,629.00. This surge was accompanied by a 20-day moving crossover, signaling potential bullish momentum. Historical data reveals an average price gain of 3.18% within seven days of this signal over the last five years. Furthermore, the company’s impressive annual revenue growth of 19.92% outperformed its three-year compound annual growth rate (CAGR) of 14.57%. Interestingly, in the last 15 years, only 2.61% of trading sessions saw intraday gains higher than 5%, indicating the stock’s stability.
Conversely, Hindustan Unilever Ltd. observed a slight decline in its share price, falling by -0.79% from its previous close of Rs 2,519.55 to Rs 2,499.60. Two moving crossovers, the 14-day and 20-day, occurred on October 4, 2023, suggesting potential fluctuations in the stock. Historical data highlights an average price gain of 2.24% and 2.37% within seven days of these signals, respectively, over the last five years. Remarkably, only 1.01% of trading sessions in the last 18 years recorded intraday gains exceeding 5% for Hindustan Unilever Ltd.
Advance Decline Ratio
Today, the advance-decline ratio was 1.77, and the market breadth was positive. The volatility index India Vix decreased by 5.57 percent to settle at 10.33 and the FIIs were net sellers today.
DAILY MARKET ACTION
Advancers – 1543
Decliners – 870
52Wk High – 122
52Wk Low – 11
High Band Hitters – 112
Low Band Hitters – 28
200d SMA – 18518
50d SMA – 19607
20d SMA – 19787
Top Gainers and Losers Stocks
The top gainers were Bajaj Finserv (+5.60%), Bajaj Finance (+3.81%), Titan (+2.76%), IndusInd Bank (+2.23%), and Tata Consumer (+1.66%).
The top losers were Hindustan Unilever (-0.79%), Coal India (-0.64%), ONGC (-0.38%), Asian Paint (-0.29%), and Bharti Airtel (-0.25%).
Top Gainers and Losers Sector
The top gainers sector were Realty (+3.08%), Consumer Durables (+0.77%), Financial Services (+0.71%), Pharma (+0.71%), and IT (+0.67%).
The top losers sector were Media (-0.02%)
SECTORS – NOTABLE ACTION
CONSUMER DURABLES +0.77%
FINANCIAL SERVICES +0.71%
Stocks Ban List
(SEBI) F&O ban list (PNB open at -77.45 and close at -76.75), (DELTACORP open at -136.80 and close at +137.75), (MANAPPURAM open at -142.30 and close at +142.85), and (IBULHSGFIN open at +172.20 and close at +172.05) 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.
RBLBANK, HINDCOPPER, BALRAMCHIN, MCX, BHEL, SAIL, and SUNTV stock has the possibilities of enterance in the ban list.
As per the above pivots data, 19590 to 19700 is the Nifty 50 trading range.
Read previous -Daily Insights- here
Nifty’s Upward Surge Hammer Formation Sparks Optimism!
Surviving the Market Meltdown Last-Hour Buying Rescues Nifty from Plummeting Below 19,350
Foreign Fund Outflows and Sluggish Asian Markets Drive Tuesday’s Equity Decline
This article is only for educational purposes and is not an investment advice.