Nifty 50 Index Closes Above 17800 Mark, Despite Early Dip

At the close, the Nifty 50 was at 17,828.00 up by 0.09%

Nifty 50 started at a lower value but managed to climb up by 0.09 percent and closed in the green. The fact that it closed above 17800 suggests that the market participants were bullish on the stocks of the companies that make up the index.

On April 13, the market managed to eke out marginal gains, extending its winning streak for the ninth consecutive session. The Nifty closed at 17,828.00, reflecting an increase of 15.60 points.

Following a negative start, the market experienced continued losses throughout the day, causing the Nifty to fall below 17,750. The downward trend was primarily driven by weakness in the information technology sector, fueled by disappointing earnings numbers from TCS and anticipation of Infosys’ earnings report later in the day. However, in the final hour of trading, the market saw an uptick in buying activity, erasing all previous losses, resulting in the indices closing flat.

Bank Nifty: Up by 1.38%

Bank Nifty opened in the green and gained 1.38 percent, closing in the green at 42,132.55. Similarly, the BSE Sensex, which is a broader index comprising of 30 large-cap stocks, opened slightly higher and closed in the green at a high of 60,431.00, up by 0.06 percent. Overall, the positive movements in the Bank Nifty and BSE Sensex reflect a positive sentiment in the Indian stock market.

The decline in CPI inflation to 5.66% in India, accompanied by the easing of core inflation, reinforces the MPC’s stance to maintain policy rates unchanged. Meanwhile, US inflation subsided to 5.0%, but apprehensions heightened globally after the FOMC minutes alluded to the likelihood of a “mild recession” triggered by banking turmoil.

On the sectoral front, the information technology index declined by 2 percent, while the capital goods, pharmaceuticals, and oil & gas indices witnessed a 0.5 percent decrease each. Conversely, the PSU bank and realty indices experienced a rise of 1 percent each.

Bank Nifty

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

The gainers included AU Bank with a 16.57% increase, IndusInd Bank with a 2.81% increase, Axis Bank with a 1.52% increase, Kotak Bank with a 1.30% increase, and Punjab National Bank with a 1.28% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 2.10% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

On Thursday, the Indian rupee made gains, surging to the crucial psychological level of 81.85 per dollar, as the easing of US inflation fueled speculations that the Federal Reserve may be nearing the end of its rate hike cycle, thereby impacting the strength of the US dollar.

By the end of the trading session, the rupee had appreciated by 0.28%, closing at 81.85 per US dollar, with an intraday high of 81.8375. Despite its recent gains for three consecutive weeks, it remained relatively stable for the week.

On Thursday, the crude oil market witnessed stability, with investors assessing the potential impact of both constrained supply and a likely recession in the US, which is the largest global consumer of oil. Brent crude registered a drop of 7 cents, or 0.08%, settling at $87.26 per barrel. In contrast, US West Texas Intermediate (WTI) remained unchanged at $83.26.

Buzz

During Thursday’s morning trading session, shares of the IT giant TCS suffered a nearly 2% decline as the company’s Q1 earnings failed to meet market projections and raised concerns about its North American market performance. At the NSE, the stock dipped by 1.87% to reach Rs. 3,181.

The IT sector as a whole also experienced a downward trend, with other key players such as Infosys, Tech Mahindra, HCL Technologies, and Wipro recording declines during the morning trading session.

TCS reported a 14.8% YoY increase in consolidated net profit, reaching Rs 11,392 crore, along with a 16.9% growth in revenue, reaching Rs 59,162 crore. However, the company missed expectations, with quarterly growth at 1.6% for revenue and 5.0% for net profit. Furthermore, the earnings before interest and taxes (EBIT) margin fell by 0.5% to 24.5%.

Although analysts anticipated lower growth during a seasonally weak quarter, the recent banking crisis in the US has resulted in forecast reductions by analysts and increased caution among investors.

Advance Decline Ratio

Today, the advance-decline ratio was 1.14, and the market breadth was positive. The volatility index India Vix decreased by 2.97 percent to settle at 11.91 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1197
Decliners – 1049
52Wk High –  49
52Wk Low – 11
High Band Hitters – 78
Low Band Hitters – 29
200d SMA – 17546
50d SMA – 17508
20d SMA – 17264

Top Gainers and Losers Stocks

The top gainers were IndusInd Bank (+2.81%), HDFC Life (+2.77%), Eicher Motors (+2.69%), Apollo Hospitals (+1.96%), and Power Grid (+1.91%).

The top losers were Infosys (-3.14%), Tech Mahindra (-2.17%), HCL Technologies (-2.01%), NTPC (-1.59%), and TCS (-1.53%).

Top Gainers and Losers Sector

The top gainers sectors were Realty (+1.13%), Financial Services (+0.81%), Auto (+0.44%), Consumer Durables (+0.26%), and Metal (+0.25%).

The top losers sectors were IT (-2.20%), Pharma (-0.76%), Media (-0.74%), and Oil & Gas (-0.31%).

The Nifty Midcap 50 was up by 0.36 percent, while the Nifty Small Cap 50 was up by 0.37 percent on the day.

The Nifty Midcap 50 index currently closed at 8,677.35, while the Nifty Small Cap 50 index currently closed at 4,269.95.

SECTORS – NOTABLE ACTION
REALTY +1.13%
FINANCIAL SERVICES +0.81%
AUTO +0.44%
IT -2.20%
PHARMA -0.76%
MEDIA -0.74%

Stocks Ban List

(SEBI) F&O ban list (BALRAMCHIN open at 412.80 and close at 403.95) and (DELTACORP open at 189.25 and close at 190.25) is not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned BALRAMCHIN and DELTACORP 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.

IBULHSGFIN has the possiblities of enterance in the ban list.

Daily Pivots

As per the above pivots data, 17750 to 17880 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Extends Rally for 8th Straight Session on Strong Buying
Seventh-Day Rally Propels Nifty Above 17,700
Market Ends with Marginal Gains after Early Surge

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