Markets Rebound, Nifty Gains Over Half a Percent to Settle at 19,517

At the close, the Nifty 50 was at 19,517.00 up by 0.70%

In a powerful start to the trading day, the NSE Nifty 50 surged by an impressive 0.70 percent, setting a determined tone for the market. The index continued its upward momentum throughout the session, ultimately closing above the significant 19500 level. This steadfast performance reflects the market’s resilience and potential for sustained growth.

Investors witnessed a dynamic trading session as the NSE Nifty 50 confidently climbed higher, signaling robust market sentiment. The day’s movement underlines the index’s ability to navigate challenges and capitalize on opportunities.

Closing above 19500 marks a significant milestone, underscoring the index’s strength and solidifying its positive trajectory. This accomplishment signifies not only a strong performance but also points towards an optimistic outlook for the market in the days ahead.

Despite prevailing challenges, the Nifty index experienced a 1% decline this week, marking its most challenging performance in over three months. This downward trend can be attributed to persistent global headwinds, including the recent U.S. sovereign rating reduction and sluggish data from China.

Conversely, the broader market has been buoyed by factors such as enhanced cost efficiencies, notable increases in sales volumes, and operational enhancements. This heightened interest in broader market segments underscores the significance of these factors in driving growth.

The domestic market’s recovery from the impact of unfavorable global cues has been bolstered by positive earnings reports. These reports played a pivotal role in revitalizing market sentiment and aiding its rebound.

However, the global market’s focus on rising U.S. bond yields continued to divert attention and hindered the influx of foreign capital into the domestic market. This factor has introduced an additional layer of complexity to the market dynamics, necessitating careful observation in the coming weeks.

Bank Nifty: Up by 0.82%

The Bank Nifty commenced the trading session on a positive note, showcasing a robust surge of 0.82 percent. This remarkable growth continued throughout the day, culminating in a confident closure in the green zone at 44,879.50.

Likewise, the BSE Sensex demonstrated its market prowess, recording a notable rise of 0.74 percent. The index maintained this upward trajectory, achieving an impressive closure at a high of 65,721.25, further solidifying its reputation as a key player in the market.

Both the Bank Nifty and BSE Sensex’s resilient performances underscore their ability to navigate fluctuations, capitalizing on opportunities and demonstrating strong market sentiment.

On the sectorial front, there was a remarkable upswing in the IT sector, achieving a substantial gain of 1.55%. Within this sector, Tech Mahindra Ltd. seized a noteworthy advancement with an impressive gain of 2.65%, closely followed by Coforge Ltd., which achieved a commendable growth of 2.41%. Conversely, the Auto sector faced a slight setback, witnessing a marginal decline of 0.33%. In this same sector, Bajaj Auto Ltd. encountered a more pronounced downturn, registering a notable loss of -2.53%, while Sona Blw Precision Forgings Ltd. experienced a relatively modest decrease of -1.14%.

Bank Nifty

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

The gainers included IndusInd Bank with a 3.01% increase, Federal Bank with a 1.97% increase, Axis Bank with a 1.63% increase, HDFC Bank with a 1.49% increase, and AU Bank with a 1.34% increase. On the other hand, the biggest losers in the sector included State Bank of India with a 2.93% decline, Bank of Baroda with a 1.68% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Rupee’s Slide Against Dollar: Factors and Future Outlook

The Indian rupee faced a decline against the US dollar this week, with the exchange rate at 82.83, marking a decrease of 0.62 rupees compared to the previous rate of 82.23. This weakening can be attributed to the dollar’s overarching strength, which saw prices escalate from 101.30$ to 102.35$.

The depreciation of the rupee was accentuated by widespread selling of the currency in relation to the dollar. The dollar’s robust performance received a boost from encouraging data concerning US jobless claims and non-manufacturing prices. These positive indicators have provided the Federal Reserve with room to contemplate the possibility of raising interest rates.

Furthermore, the recent upswing in crude oil prices exerted additional pressure on the rupee’s value. As the currency navigates these challenges, future prospects indicate potential positive movements, projecting levels ranging from 82.50 to 83.15 against the dollar.

Buzzing

In the realm of financial markets, Cipla Ltd. demonstrated a noteworthy upward movement in its share price, marking an impressive surge of 3.53% from its preceding close of Rs 1,165.85. Presently, the trading value of Cipla Ltd. stock stands at 1,206.95. This stock exhibited a remarkable return of 63.32%, a substantial outperformance compared to the Nifty Pharma, which yielded investors a return of 34.28% over a span of three years. The stock’s performance shines even more when viewed in comparison to the Nifty 100, as it delivered a robust 3-year return of 63.32%, although the Nifty 100 managed a return of 75.9% during the same duration.

Shifting focus, the State Bank of India experienced a downturn in its share price, marking a decrease of -2.93% from its preceding closure at Rs 590.50. As of now, the last recorded trading price for State Bank of India stock rests at 573.20. Notably, a 20-day moving crossover occurred on August 2, 2023, indicating potential market shifts. Historical analysis reveals that an average price decline of -2.75% has manifested within 7 days of this signal over the past 5 years.

Furthermore, State Bank of India’s financial progress is evident in its YoY advance increase of 16.96%, showcasing a robust growth trajectory. This YoY advancement surpasses the bank’s 5-year Compound Annual Growth Rate (CAGR) of 7.97%, highlighting a substantial leap in its operational performance.

Advance Decline Ratio

Today, the advance-decline ratio was 1.74, and the market breadth was positive. The volatility index India Vix decreased by 5.47 percent to settle at 10.57 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1485
Decliners – 852
52Wk High –  139
52Wk Low – 11
High Band Hitters – 87
Low Band Hitters – 34
200d SMA – 18229
50d SMA – 19140
20d SMA – 19626

Top Gainers and Losers Stocks

The top gainers were Cipla (+3.53%), IndusInd Bank (+3.01%), Tech Mahindra (+2.65%), Wipro (+2.29%), and Bharti Airtel (+2.05%).

The top losers were SBIN (-2.93%), Bajaj Auto (-2.53%), BPCL (-2.04%), Maruti (-1.01%), and NTPC (-0.95%).

Top Gainers and Losers Sector

The top gainers sectors were IT (+1.55%), Consumer Durables (+1.01%), Pharma (+0.94%), Financial Services (+0.79%), and Metal (+0.31%).

The top losers sectors were Auto (-0.33%), FMCG (-0.02%).

The Nifty Midcap 50 was up by 0.79 percent, while the Nifty Small Cap 50 was up by 0.74 percent on the day.

The Nifty Midcap 50 index currently closed at 10,741.90, while the Nifty Small Cap 50 index currently closed at 5,297.30.

SECTORS – NOTABLE ACTION
IT +1.55%
CONSUMER DURABLES +1.01%
PHARMA +0.94%
AUTO -0.33%
FMCG -0.02%

Stocks Ban List

(SEBI) F&O ban list  (HINDCOPPER open at +153.10and close at +154.00), (GNFC open at +584.45 and close at +585.75), and (PEL open at +970.00 and close at +966.30) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned HINDCOPPER, GNFC, and PEL 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.

CANFINHOME, MANAPPURAM, ZEEL, PNB, DELTACORP, VEDL, CHAMBLFERT, and GRANULES stocks has the possibilities of enterance in the ban list.

PEL stock has the possibilities of exit from ban list.

Daily Pivots

As per the above pivots data, 19450 to 19570 is the Nifty 50 trading range.

Read previous -Daily Insights- here
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Sharp Sell-Off in Indian Equity Indices Post Fitch Ratings’ US Credit Downgrade
NSE Nifty 50 Shows Early High but Closes Lower, Dips Below 19750 Mark
Understanding Perpetual Bonds: A Comprehensive Guide to Bonds Once and Forever

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