Market Surges with Last-Hour Buying Heavyweights Take the Lead

At the close, the Nifty 50 was at 21,618.70 up by 0.34%

The NSE Nifty 50 recently experienced a session of notable dynamism, initiating on a subdued note but culminating with a 0.34% surge, settling above the 21600 mark. This upswing, marking the third consecutive session of gains, predominantly owes its success to robust performances by heavyweight stocks.

Initially, market sentiment appeared tepid, influenced by global cues and investor caution ahead of earnings releases and inflation data. Nonetheless, a late-hour surge propelled the indices upwards, with the Nifty concluding near its daily peak. The day saw erratic swings, yet Bulls managed to fortify the support zone, concluding positively, with an increase of around 80 points.

Analysts note a resurgence in buying from critical support levels, supported by positive crossover in hourly momentum indicators, indicating an opportune investment moment. Both price and momentum indicators endorse the likelihood of this upward momentum continuation.

However, amid this oscillating pattern lacking a clear trend, experts anticipate a potential shift post Q3 results release. Market movements currently balance between buying and selling pressures, hinting at an emerging discernible trend shortly.

The impact of global indices’ weakness on domestic counterparts persists, influencing market movements. Investors keenly await upcoming catalysts, with US and Indian inflation data expected to shape near-term market trajectories. The spotlight also turns towards Q3 earnings, with tempered growth expectations overall while specific sectors like auto, capital goods, and cement maintain robust prospects. Investors navigate this dynamic landscape with a prudent outlook amidst this evolving flux.

Bank Nifty: Up by 0.25%

The Bank Nifty commenced the day on a downtrend but swiftly recovered, culminating in a 0.25% uptick and a positive closure at 47,360.85. Similarly, the BSE Sensex encountered initial fluctuations but concluded impressively high at 71,657.71, marking a 0.38% surge.

Both the Bank Nifty and BSE Sensex showcased resilience, pivoting from initial downward trajectories to close positively. This robustness hints at their potential for upward movement.

Notably, the Media sector soared by 3.47%, led by Network18 Media & Investments Ltd. with a substantial 20.00% gain and TV18 Broadcast Ltd. with a commendable 16.03% surge. Conversely, the FMCG sector experienced a slight setback, with Colgate Palmolive (India) Ltd. registering a -1.96% decrease and Varun Beverages Ltd. facing a -1.83% loss.

Foreign Institutional Investors (FIIs/FPIs) exhibited a net selling trend, with a sale value surpassing the buy value, totaling Rs. 11,343.22 crore and Rs. 9,621.87 crore, respectively, resulting in a negative net value of Rs. -1,721.35 crore.

Contrarily, Domestic Institutional Investors (DIIs) depicted an opposing trend, with a buy value surpassing the sale value. DIIs registered a buy value of Rs. 10,461.84 crore against a sale value of Rs. 8,381.83 crore, indicating a positive net value of Rs. 2,080.01 crore. This divergence highlights contrasting market sentiments between the two investor segments.

Bank Nifty

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

The gainers included ICICI Bank with a 1.30% increase, IndusInd Bank with a 0.90% increase, Bank of Baroda with a 0.34% increase, HDFC Bank with a 0.33% increase, and Federal Bank with a 0.23% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 1.62% decline, Axis Bank with a 0.86% decline, AU Bank with a 0.55% decline, State Bank of India with a 0.54% decline, and Punjab National Bank with a 0.53% decline. These results suggest that some of the banking stocks performed better for the day.

Rupee Volatility and Anticipating Influences from US CPI Data

The Indian rupee encountered a recent period of fluctuation, oscillating between 83.18 and 82.95 against the US dollar. At the outset, it showed weakness touching 83.18 but rallied to 82.95, marking a modest gain of 0.10rs. Notably, buyers exhibited increased confidence amid these range-bound movements. However, the overarching trajectory appears lateral, indicating a lack of significant directional movement. These shifts in the rupee’s value are primarily driven by the persistent trend of volatility within a defined range.

The impending release of the US Consumer Price Index (CPI) data, scheduled for tomorrow evening, holds substantial significance. Market experts anticipate that this economic indicator will significantly influence the trajectory of the US dollar. Consequently, this may have ripple effects on the rupee’s valuation as well. Depending on the CPI data outcome, a strengthened or weakened dollar could potentially shape the rupee’s movement in the near term.

Stocks Highlights

Adani Enterprises Ltd. witnessed a positive surge in its share price, marking a 3.09% increase from its previous close of Rs 3,014.60, settling at Rs 3,107.80. Intriguingly, historical data reveals that over the past 19 years, only 4.78% of trading sessions recorded intraday gains surpassing 5%. Furthermore, the company’s impressive annual revenue growth of 96.18% outpaced its 3-year Compound Annual Growth Rate (CAGR) of 45.79%. A bullish trend appears imminent with the recent 5-day moving crossover, historically resulting in an average gain of 4.98% within 7 days. Notably, Adani Enterprises allocated 2.9% of its operating revenues to interest expenses and 1.37% towards employee costs in the fiscal year ending on March 31, 2023.

In contrast, Divi’s Laboratories Ltd. observed a 2.00% decrease in its share price, closing at Rs 3,904.95 from the previous day’s Rs 3,984.65. Data analysis reveals that only 1.97% of trading sessions in the past 19 years exhibited intraday gains exceeding 5%. The company faced a contraction in its sales by 10.6%, marking the first revenue decline in the last 3 years. Despite this, a bullish sentiment emerged with a 10-day moving crossover, historically resulting in an average gain of 2.69% within 7 days. It’s notable that Divi’s Laboratories allocated less than 1% of its operating revenues to interest expenses but dedicated 12.55% towards employee costs in the fiscal year ending on March 31, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 1.10, and the market breadth was positive. The volatility index India Vix decreased by 2.20 percent to settle at 12.97 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1311
Decliners – 1192
52Wk High –  186
52Wk Low – 8
High Band Hitters – 144
Low Band Hitters – 43
200d SMA – 19317
50d SMA – 20531
20d SMA – 21488

Top Gainers and Losers Stocks

The top gainers were Adani Enterprises (+3.09%), Cipla (+3.05%), Reliance (+2.89%), HCL Technologies (+2.03%), and Hero MotoCorp (+1.56%).

The top losers were Divi’s Laboratories (-2.00%), NTPC (-1.99%), BPCL (-1.92%), ONGC (-1.78%), and Power Grid (-1.61%).

Top Gainers and Losers Sector

The top gainers sector were Media (+3.47%), Metal (+0.95%), Consumer Durables (+0.66%), IT (+0.50%), and Pharma (+0.32%).

The top losers sector were FMCG (-0.40%), and Realty (-0.11%)

SECTORS – NOTABLE ACTION
MEDIA +3.47%
METAL +0.95%
CONSUMER DURABLES +0.66%
FMCG -0.40%
REALTY -0.11%

Stocks Ban List

(SEBI) F&O ban list (HINDCOPPER open at -270.80 and close at -269.45), (BANDHANBNK open at -234.90 and close at -231.05), (INDIACEM open at -257.00 and close at +258.95), (ESCORTS open at -2824.90 and close at +2835.00), (PEL open at -923.50 and close at -921.65), (NATIONALUM open at +130.70 and close at +130.70), (SAIL open at -114.00 and close at +115.05), (DELTACORP open at -147.55 and close at +154.35), (CHAMBLFERT open at -379.45 and close at -374.45), (IEX open at +163.20 and close at +164.05), (GNFC open at +766.70 and close at +772.25), and (BALRAMCHIN open at +400.00 and close at -389.80) 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.

INDUSTOWER, PVRINOX, BHEL, BIOCON, ASHOKLEY, ABFRL, UPL, and RBLBANK stocks has the possibilities of entrance in the ban list.

DELTACORP, CHAMBLFERT, IEX, GNFC, and BALRAMCHIN stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 21450 to 21750 is the Nifty 50 trading range.

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