Markets Gain Momentum Amid Sector-Wide Buying

At the close, the Nifty 50 was at 18,726.40 up by 0.68%

NSE Nifty 50 commenced with a remarkable opening, soaring to great heights with an impressive gap up. Throughout the trading session, it maintained its upward trajectory, ultimately concluding in a positive zone. The index exhibited a commendable growth of 0.68 percent, solidifying its stance as a beacon of resilience in the financial landscape. As the closing bell resonated, the Nifty stood tall, triumphantly surpassing the significant milestone of 18700, reaffirming its robustness and garnering investor confidence.

The markets have experienced a significant surge, driven by widespread buying activity in anticipation of the upcoming credit policy. The session was characterized by an optimistic sentiment, as market participants anticipated a potential pause in the rate hike cycle, given the positive trajectory of the domestic macroeconomy. The focus now shifts to the Reserve Bank of India’s growth forecast and inflation projections for the year. If there is any downward revision in inflation expectations, the prevailing optimism is expected to endure, keeping the markets buoyant.

The markets are currently experiencing a great momentum, with investors eagerly anticipating the upcoming credit policy. The widespread buying activity has resulted in a notable surge, which has been further fueled by the optimistic sentiment among market participants. The positive trajectory of the domestic macroeconomy has led to expectations of a potential pause in the rate hike cycle, adding to the overall optimism.

As we look ahead, the focus now shifts to the Reserve Bank of India’s growth forecast and inflation projections for the year. Any downward revision in inflation expectations is likely to further fuel the prevailing optimism, keeping the markets buoyant. It is an exciting time for investors, and we can expect to see continued growth and momentum in the markets.

Bank Nifty: Up by 0.25%

Exhibiting a positive trend, the Bank Nifty initiated the trading session on a bullish note, witnessing an increase of 0.25 percent and concluding in the green zone at a notable level of 44,275.30. Simultaneously, the BSE Sensex showcased a commendable growth of 0.56 percent, culminating in a favorable outcome with a remarkable closing figure of 63,142.96, further establishing its prominence in the market.

The Nifty index commenced the trading day with a modest gap up opening, and for the next few hours, it remained confined within a narrow trading range. The predominant reason for this was the Bank Nifty, which exhibited nearly flat movement during the initial trading hours. Nevertheless, during the second hour of the session, bullish sentiment rekindled, as the Nifty continued to scale new heights with each passing hour, despite the ongoing struggles faced by the Bank Nifty.

On the sectorial front, the realty sector emerged as the top gainer, posting a notable growth of 1.59%. Within this sector, The Phoenix Mills Limited recorded an impressive gain of 5.86%, while Macrotech Developers Limited witnessed a commendable increase of 3.32%. Following closely was the metal sector, exhibiting a gain of 1.51%. Notably, Welspun Corp Limited registered a substantial growth of 4.12%, while Jindal Stainless Limited experienced a notable gain of 2.89% within this sector.

Bank Nifty

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

The gainers included AU Bank with a 1.11% increase, Bank of Baroda with a 1.11% increase, HDFC Bank with a 0.76% increase, Axis Bank with a 0.70% increase and Punjab National Bank with a 0.67% increase. On the other hand, the biggest losers in the sector included Kotak Bank with a 1.00% decline, IDFC First Bank with a 0.34% decline, and ICICI Bank with a 0.22% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

Britannia Industries Ltd. witnessed a surge in its share price, rising by 4.17% from its previous close of Rs 4,705.40. The stock of Britannia Industries Ltd. recorded its last traded price at Rs 4,901.45. Over a span of three years, the stock generated a return of 35.73%, in contrast to the Nifty 100, which achieved a return of 79.33%. Impressively, the company exhibited an annual revenue growth of 15.02%, surpassing its three-year Compound Annual Growth Rate (CAGR) of 11.49%. Furthermore, Britannia Industries Ltd. delivered a remarkable Return on Equity (ROE) of 65.69% for the fiscal year ending on March 31, 2023, outperforming its five-year average of 45.21%.

Kotak Mahindra Bank Ltd. observed a decline in its share price, decreasing by -1.00% compared to its previous close of Rs 1,959.05. The stock of Kotak Mahindra Bank Ltd. was last traded at Rs 1,939.40. A 20-day moving crossover signal emerged yesterday, historically resulting in an average price gain of 2.5% within seven days. Furthermore, the company demonstrated an annual revenue growth of 15.81%, surpassing its three-year Compound Annual Growth Rate (CAGR) of 10.62%. Notably, Kotak Mahindra Bank Ltd. reported a year-on-year (YoY) increase of 17.94% in its advances, outperforming its five-year CAGR of 8.08%. Over the past 18 years, only 2.47% of the trading sessions witnessed intraday gains exceeding 5%.

Foreign Institutional Investors (FII/FPI) recorded a buy value of 9,569.91 (Rs. Cr.), a sale value of 8,187.34 (Rs. Cr.), resulting in a net value of 1,382.57 (Rs. Cr.). On the same date, Domestic Institutional Investors (DII) reported a buy value of 5,931.80 (Rs. Cr.), a sale value of 5,539.50 (Rs. Cr.), and a net value of 392.30 (Rs. Cr.).

Buzz

It is expected that the Monetary Policy Committee (MPC) will maintain the current interest rates due to the decline in Consumer Price Index (CPI) inflation. The most recent inflation figures have remained within the targeted range, which is in line with the previous policy’s indications. This is good news for the Reserve Bank of India (RBI) as the Indian Meteorological Department (IMD) has forecasted a normal monsoon, despite slight concerns about El Nino. This will serve as a favorable factor for the RBI.

Furthermore, there are no immediate concerns to be addressed as liquidity exceeds 1.00 lakh crores and the Weighted Average Call Rate (WACR) remains around 6.25%. This indicates that the economy is stable and there is no need for any immediate action.

In conclusion, the current economic situation in India is positive, with inflation remaining within the targeted range and a normal monsoon forecasted. The RBI can continue to maintain the current interest rates, and there are no immediate concerns to be addressed.

Benefiting from foreign fund inflows and positive risk sentiments prior to the Reserve Bank of India’s monetary policy decision on Thursday, the Indian rupee strengthened by 5 paise to conclude at 82.55 against the US dollar.

Commencing the trading session at 82.56 against the US dollar in the interbank foreign exchange market, the local unit exhibited stability and concluded at 82.55 (provisional), marking a gain of 5 paise compared to its previous close.

On Tuesday, the Indian rupee concluded the trading day at 82.60 against the US currency. Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six major currencies, experienced a decline of 0.10% to reach 104.02.

Advance Decline Ratio

Today, the advance-decline ratio was 1.89, and the market breadth was positive. The volatility index India Vix increased by 0.54 percent to settle at 11.44 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1524
Decliners – 806
52Wk High –  164
52Wk Low – 10
High Band Hitters – 85
Low Band Hitters – 52
200d SMA – 17864
50d SMA – 17984
20d SMA – 18414

Top Gainers and Losers Stocks

The top gainers were Britannia (+4.17%), Tata Consumer (+3.89%), BPCL (+3.30%), Nestle India (+2.99%), and HDFC Life (+2.67%).

The top losers were Kotak Bank (-1.00%), Cipla (-0.98%), Maruti (-0.65%), Bajaj Finance (-0.41%), and Adani Ports (-0.26%).

Top Gainers and Losers Sector

The top gainers sectors were Realty (+1.59%), Metal (+1.51%), FMCG (+1.12%), Oil & Gas (+1.06%), and IT (+0.78%).

The Nifty Midcap 50 was up by 0.80 percent, while the Nifty Small Cap 50 was up by 1.32 percent on the day.

The Nifty Midcap 50 index currently closed at 9,704.75, while the Nifty Small Cap 50 index currently closed at 4,811.35.

SECTORS – NOTABLE ACTION
REALTY +1.59%
METAL +1.51%
FMCG +1.12%

Stocks Ban List

(SEBI) F&O ban list  (MANAPPURAM open at -110.00 and close at +113.00), (IBULHSGFIN open at -113.40 and close at -112.50), and (INDIACEM open at +221.40 and close at +223.05) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned MANAPPURAM, IBULHSGFIN, and INDIACEM from trading in the futures and options (F&O) segment of 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.
BHEL, ZEEL, DELTACORP, RBLBANK and HINDCOPPER Face Possible Entry in Ban List.

Daily Pivots

As per the above pivots data, 18650 to 18780 is the Nifty 50 trading range.

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