Nifty 50 Extends Winning Streak Amidst Volatility

At the close, the Nifty 50 was at 21,910.75 up by 0.32%

In today’s trading session, the NSE Nifty 50 index exhibited resilience, starting on a positive note with a gain of 0.32% and closing in the green zone. With the Nifty surpassing the 21,900 mark, it marked the third consecutive session of gains, indicating a positive shift in market sentiment amidst volatile conditions.

Initially, the Indian equity market followed positive global cues but encountered fluctuations, trading range-bound in the first half. However, the second half witnessed a resurgence in momentum, with the Nifty closing near its intraday high at 21,910.75, up by 0.32%. This consolidation breakout, accompanied by the Nifty closing above the 20-day moving average for the third successive session and a bullish crossover in the Relative Strength Index (RSI), signifies an encouraging outlook for investors.

Notably, today’s rise in benchmark indices was propelled by a rebound in information technology stocks and a sustained rally in state-owned banks. Despite ongoing volatility influenced by mixed global cues, the market demonstrated resilience, buoyed by positive developments such as the disinflation trend in the eurozone and improved earnings.

Amidst the broad-based recovery, investors are favoring quality large-cap stocks due to prevailing valuation gaps, exercising caution regarding small and mid-cap stocks.

Bank Nifty: Up by 0.68%

The Bank Nifty exhibited a mixed performance today, initially opening in the green, then experiencing a downturn before ultimately closing with a gain of 0.68 percent at 46,218.90, remaining in positive territory. Likewise, the BSE Sensex also saw positive movement, rising by 0.32 percent and concluding the trading session at a high of 72,050.38, signaling a bullish sentiment in the market.

In the sectorial front, the Oil & Gas sector has shown significant gains, with a notable increase of 2.46%. Within this sector, Oil India Ltd. experienced a remarkable surge of 12.40%, while Aegis Logistics Ltd. also saw a substantial rise of 9.40%. Conversely, the FMCG (Fast Moving Consumer Goods) sector witnessed a decline, with a notable loss of 0.96%. Among the companies within this sector, ITC Ltd. registered a decrease of -1.65%, and Britannia Industries Ltd. experienced a decline of -1.31%.

Foreign Institutional Investors (FIIs/FPIs) recorded a buy value of Rs. 13,657.88 crore and a sale value of Rs. 16,722.03 crore, resulting in a net value of -Rs. 3,064.15 crore. Conversely, Domestic Institutional Investors (DIIs) displayed a buy value of Rs. 11,891.94 crore and a sale value of Rs. 9,615.01 crore, leading to a positive net value of Rs. 2,276.93 crore.

Bank Nifty

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

The gainers included Federal Bank with a 4.98% increase, Punjab National Bank with a 4.88% increase, Bank of Baroda with a 2.73% increase, State Bank of India with a 2.29% increase, and HDFC Bank with a 2.21% increase. On the other hand, the biggest losers in the sector included Axis Bank with a 2.01% decline, AU Bank with a 1.36% decline, Bandhan Bank with a 0.55% decline, Kotak Bank with a 0.40% decline, and ICICI Bank with a 0.35% decline. These results suggest that some of the banking stocks performed better for the day.

Rupee Weathers Fluctuations Amidst Global Market Dynamics

The Indian rupee experienced a marginal depreciation of 2 paise against the US dollar, closing at 83.04 (pro) on Thursday. This movement was influenced by a combination of factors, including the strength of the US dollar and elevated crude oil prices in the international market. Foreign fund outflows also contributed to the rupee’s decline, albeit being offset to some extent by positive sentiment in domestic markets.

Throughout the trading session, the rupee displayed a range-bound pattern, fluctuating between an intra-day high of 82.99 and a low of 83.04 against the American currency. Despite Wednesday’s appreciation of 6 paise to close at 83.02 against the US dollar, the rupee faced pressure due to prevailing market conditions.

Looking ahead, the rupee is expected to exhibit a slight positive bias, supported by a rise in risk appetite in global markets and a weakening tone in the US dollar. Additionally, the overnight decline in global crude oil prices and favorable trade balance data may provide further support to the Indian currency.

Meanwhile, the dollar index, which measures the greenback’s performance against a basket of six major currencies, experienced a slight decrease, standing at 104.61. Similarly, Brent crude futures, the global oil benchmark, saw a modest decline, trading at $81.27 per barrel, contributing to the overall market sentiment. Investors should monitor these trends closely to make informed decisions amidst evolving market dynamics.

Stocks Highlights

Mahindra & Mahindra Ltd. (M&M) Share Price Soars with Strong Financial Performance

Mahindra & Mahindra Ltd.’s share price surged by 6.81% to Rs 1,769.85, marking a notable increase from its previous close of Rs 1,657.05. The company showcased impressive financial metrics, with a Return on Equity (ROE) of 18.24% in the fiscal year ending March 31, 2023, outperforming its 5-year average of 10.72%. Furthermore, M&M demonstrated robust revenue growth, with an annual increase of 34.43%, surpassing its 3-year Compound Annual Growth Rate (CAGR) of 16.85%.

However, recent market indicators suggest a sell signal for M&M, as a Daily Moving Average Convergence Divergence (MACD) crossover occurred yesterday. Historical data reveals an average price decline of -3.55% within 10 days following this signal over the past decade. Investors should carefully consider these factors before making investment decisions regarding M&M stocks.

Axis Bank Ltd. Share Price Declines Despite Strong Loan Book Growth

On the contrary, Axis Bank Ltd. witnessed a decrease of -2.01% in its share price, falling to Rs 1,074.75 from its previous close of Rs 1,096.85. Despite this, the bank showcased positive performance indicators, including a YoY increase of 19.76% in its advances, surpassing its 5-year CAGR of 11.38%. Additionally, the company demonstrated an increase in cash from investing activities by Rs 32,694.38 crore, indicating a YoY growth of 20.06%.

Despite the decline in share price, a bullish signal emerged for Axis Bank, as a 50-day moving average crossover occurred yesterday. Historical data reveals an average price gain of 4.89% within 30 days following this signal over the past five years, suggesting a favorable outlook for investors. However, individuals should conduct thorough research and analysis before making investment decisions related to Axis Bank stocks.

Advance Decline Ratio

Today, the advance-decline ratio was 1.77, and the market breadth was positive. The volatility index India Vix decreased by 1.36 percent to settle at 15.23 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1605
Decliners – 908
52Wk High –  134
52Wk Low – 14
High Band Hitters – 154
Low Band Hitters – 53
200d SMA – 19847
50d SMA – 21544
20d SMA – 21674

Top Gainers and Losers Stocks

The top gainers were M&M (+6.81%), Power Grid (+4.57%), BPCL (+4.38%), NTPC (+3.92%), and ONGC (+2.83%).

The top losers were Axis Bank (-2.01%), Apollo Hospitals (-1.84%), ITC (-1.65%), Britannia (-1.31%), and Hindustan Unilever (-1.30%).

Top Gainers and Losers Sector

The top gainers sector were Oil & Gas (+2.46%), Auto (+1.35%), Realty (+0.98%), IT (+0.59%), and Consumer Durables (+0.52%).

The top losers sector were FMCG (-0.96%), Media (-0.11%), and Pharma (-0.09%).

SECTORS – NOTABLE ACTION
OIL & GAS +2.46%
AUTO +1.35%
REALTY +0.98%
FMCG -0.96%
MEDIA -0.11%
PHARMA -0.09%

Stocks Ban List

(SEBI) F&O ban list (HINDCOPPER open at +264.50 and close at -256.40), (INDUSTOWER open at +217.95 and close at +221.25), (BANDHANBNK open at +198.25 and close at -197.35), (ZEEL open at +203.40 and close at -187.90), (ABFRL open at +245.30 and close at -238.50), (INDIACEM open at +237.40 and close at +235.60), (DELTACORP open at +139.00 and close at +139.25), (BALRAMCHIN open at +372.60 and close at +373.10), (SAIL open at +124.00 and close at +125.75), (ASHOKLEY open at +174.50 and close at +174.50), (BIOCON open at +273.70and close at +274.30), (AUROPHARMA open at -998.95 and close at +1017.20), (PNB open at +124.90 and close at +128.85), and (NATIONALUM open at +159.00 and close at +157.25) 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.

CANBK, RBLBANK, PEL, GNFC, TATACHEM, GMRINFRA, PVRINOX, BHEL, and MANAPPURAM stocks has the possibilities of entrance in the ban list.

SAIL, ASHOKLEY, BIOCON, AUROPHARMA, PNB, and NATIONALUM stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 21800 to 22000 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Gains in SBI and PSU Banks Propel Market to Close Higher in Volatile Session
Intraday Volatility High Despite Narrow Range
NSE Nifty 50 Sees Decline Amidst Market Volatility

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