Nifty 50 Continues Positive Trend, Hits New Highs

At the close, the Nifty 50 was at 22,666.30 up by 0.68%

The NSE Nifty 50 commenced on a positive note, surging by 0.68% and maintaining the bullish momentum throughout the day. Closing above 22,650, the index reached new heights, propelled by favorable global cues and widespread sectoral buying.

Market Performance and Intricacies Starting the week at approximately 22,600, the Nifty50 steadily climbed, reaching an intraday peak of 22,697.30, marking a fresh all-time high. However, profit booking activities at higher levels moderated the gains, resulting in a closing of 22,666.30, reflecting a 0.68% increase. Despite some heavyweights witnessing profit-taking, the overall sentiment remained positive.

Sectorial Contributions The buoyant sentiment persisted, buoyed by sector-specific tailwinds and optimistic expectations surrounding Q4 earnings growth. Notably, sectors like auto, realty, oil & gas, and consumer discretionary led the charge, while IT remained subdued due to tempered Q4 growth projections amid spending slowdown concerns.

Global Influences On the global front, investor focus shifted towards upcoming key events such as the release of US CPI data, ECB policy decisions, and UK GDP figures following robust US job data. The market anticipates further market movements based on these indicators, with sentiment likely to remain positive in the near term. Overall, the broad-based market rally, coupled with sector-specific strength, underscores the resilience and optimism prevailing in the markets.

Bank Nifty: Up by 0.18%

Bank Nifty commenced the session on a positive note, opening in the green with a marginal increase of 0.18%. Continuing its upward momentum, the index closed in the green at 48,581.70, reflecting a favorable trading day. Similarly, the BSE Sensex demonstrated a robust performance, marking a notable uptick of 0.67%. Closing at a high of 74,742.50, the Sensex concluded the session on a positive trajectory, indicating investor confidence and market resilience.

In the sectorial front, the automotive sector witnessed a notable surge, with a gain of 2.16%. Notably, Exide Industries Ltd. soared by an impressive 16.78%, reflecting robust performance. Eicher Motors Ltd. also saw a significant uptick, gaining by 3.91%.

Conversely, the media sector experienced a downturn, with a decline of 0.77%. Tips Industries Ltd. recorded a loss of -1.79%, while Sun TV Network Ltd. observed a decrease of -1.77%.

Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI) alongside Domestic Institutional Investors (DII) have showcased diverse trading patterns. FII/FPI transactions displayed a buy value of 11,504.78 and a corresponding sale value of 12,189.46, resulting in a net value of -684.68. Conversely, DIIs engaged in transactions with a buy value of 12,727.46 and a sale value of 9,256.92, yielding a notable net value of 3,470.54.

Bank Nifty

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

The gainers included IDFC First Bank with a 2.42% increase, Axis Bank with a 1.69% increase, IndusInd Bank with a 1.00% increase, State Bank of India with a 0.37% increase, and ICICI Bank with a 0.33% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 6.21% decline, Punjab National Bank with a 2.60% decline, Bank of Baroda with a 0.39% decline, HDFC Bank with a 0.29% decline, and AU Bank with a 0.02% decline. These results suggest that some of the banking stocks performed better for the day.

Indian Rupee Strengthens Amidst Optimistic Trading

In early trading on Monday, the Indian rupee displayed strength, continuing its upward trajectory from the previous session. Despite a surge in U.S. bond yields, indicating reduced expectations of a Federal Reserve rate cut in June, the rupee stood resilient at 83.26 against the dollar, slightly higher than the previous session’s 83.2950. Notably, the rupee rebounded from Thursday’s record low of 83.4550, supported by broad-based dollar sales from both local and foreign banks.

Factors Influencing Rupee Movement Analysts suggest that the rupee may maintain its upward momentum, buoyed by a slight bias towards appreciation. Additionally, the moderation in crude oil prices, driven by easing tensions in the Middle East, is expected to further bolster the rupee. Brent crude oil futures witnessed a 1.6% decline, reaching $89.70 per barrel.

Market Dynamics Despite the dollar index remaining relatively unchanged at 104.3, Asian currencies displayed a mixed performance. U.S. Treasury yields surged following positive job creation data for March, leading to a reassessment of rate cut expectations for the Fed’s June meeting. Consequently, dollar-rupee forward premiums experienced a decline, with the 1-year implied yield down 2 bps at 1.65%.

Anticipated Trading Range and Market Closure Market analysts anticipate the rupee to fluctuate within a range of 83.20-83.40 on Monday. It’s noteworthy that both India’s rupee and bond markets will remain closed on Tuesday, adding a potential element of stability to the currency’s movement.

Stocks Highlights

Eicher Motors Ltd. Displays Positive Momentum

Eicher Motors Ltd. witnessed a significant uptick in its share price, rising by 3.91% from its previous close of Rs 4,031.25 to Rs 4,189.00. Analysis reveals that the company has allocated less than 1% of its operating revenues towards interest expenses and 6.94% towards employee costs in the fiscal year ending on March 31, 2023. Additionally, the stock has delivered a commendable 3-year return of 57.9% compared to Nifty 100’s return of 54.56%. In comparison to Nifty Auto, Eicher Motors Ltd. has generated a return of 57.9%, while Nifty Auto offered investors a return of 116.89% over the same period.

Adani Ports & Special Economic Zone Ltd. Faces Decline

Conversely, Adani Ports & Special Economic Zone Ltd. experienced a decline in its share price, decreasing by -1.64% from its previous close of Rs 1,375.55 to Rs 1,353.00. Financial data indicates that the company has allocated 11.33% of its operating revenues towards interest expenses and 5.65% towards employee costs for the fiscal year ending on March 31, 2023. Despite this, the stock has yielded a robust 3-year return of 67.14% compared to Nifty 100’s return of 54.56%. Compared to Nifty Infrastructure, Adani Ports & Special Economic Zone Ltd. has generated a return of 67.14%, while Nifty Infrastructure provided investors with a return of 100.17% over the same period.

Advance Decline Ratio

Today, the advance-decline ratio was 0.88, and the market breadth was negative. The volatility index India Vix increased by 2.40 percent to settle at 11.61 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1201
Decliners – 1360
52Wk High –  155
52Wk Low – 5
High Band Hitters – 160
Low Band Hitters – 67
200d SMA – 20513
50d SMA – 22077
20d SMA – 22233

Top Gainers and Losers Stocks

The top gainers were Eicher Motors (+3.91%), M&M (+3.36%), Maruti (+3.33%), NTPC (+3.16%), and SBI Life (+2.27%).

The top losers were Adani Ports (-1.64%), Nestle India (-1.49%), Apollo Hospitals (-1.23%), Wipro (-0.99%), and Sun Pharmaceutical (-0.58%).

Top Gainers and Losers Sector

The top gainers sector were Auto (+2.16%), Oil & Gas (+1.45%), Realty (+1.33%), Metal (+1.10%), and Consumer Durables (+0.83%).

The top losers sector were Media (-0.77%), and IT (-0.52%).

SECTORS – NOTABLE ACTION
AUTO +2.16%
OIL & GAS +1.45%
REALTY +1.33%
MEDIA -0.77%
IT -0.52%

Stocks Ban List

(SEBI) F&O ban list (ZEEL open at +153.75 and close at -149.70), (SAIL open at +147.30 and close at +146.30), and (BANDHANBNK open at -185.10 and close at -184.95) 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.

INDIACEM, PEL, IDEA, NATIONALUM, GNFC, TATACHEM, ABFRL, and INDUSTOWER stocks has the possibilities of entrance in the ban list.

BANDHANBNK stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 22500 to 22800 is the Nifty 50 trading range.

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