Nifty 50 Records Historic High Amidst Market Recovery

At the close, the Nifty 50 was at 22,474.05 up by 0.53%

The NSE Nifty 50 showcased remarkable resilience today, initiating on a cautious note but ultimately closing in the green with a notable gain of 0.53%. Starting the day with a dip, the market staged an impressive recovery, soaring to new heights and closing at its best-ever level of 22,474.05 points.

Despite a sluggish start, the market witnessed a sharp turnaround in the final hours of trading, fueled by significant buying activity in banking, IT, and pharma sectors. Notably, the Nifty rebounded by an impressive 250 points from its intraday low, highlighting the market’s agility amidst volatility.

Equity benchmarks displayed notable strength in the last hour of trade, setting fresh record highs, particularly driven by a notable swing in banking and financial shares. Technical indicators suggest a positive short-term trend, with the index closing above the 21EMA on the daily chart and the RSI indicating bullish momentum.

However, today’s trade wasn’t without its challenges, as extreme volatility dominated the morning session, particularly impacting mid and small-cap segments. Global markets also experienced mixed signals ahead of the US FED chair’s testimony to Congress, contributing to fluctuating sentiments. Despite initial losses, the domestic market showcased resilience, with large-cap stocks witnessing increased buying interest. Nonetheless, concerns about stretched valuations persisted, leading to profit booking in mid and small caps.

Bank Nifty: Up by 0.81%

The Bank Nifty and BSE Sensex displayed a mixed start but ended the trading session on a positive note. The Bank Nifty commenced in the red but made a noteworthy recovery, closing with a gain of 0.81% at 47,965.40. Similarly, the BSE Sensex, after a cautious beginning, surged by 0.55% to conclude at a high of 74,085.99, both indices exhibiting resilience amidst market fluctuations.

Despite initial uncertainties, both indices displayed strength and resilience, reflecting the underlying optimism in the market. The banking sector, in particular, demonstrated noteworthy performance, contributing significantly to the upward trajectory of the Bank Nifty. Meanwhile, the BSE Sensex’s upward movement was supported by gains across various sectors, indicating broad-based buying interest.

In the sectorial front, the Information Technology (IT) sector has shown notable growth, marking a 0.77% increase. Leading the charge are companies like HCL Technologies Ltd., which saw a remarkable gain of 1.77%, closely followed by Persistent Systems Ltd., boasting a 1.63% uptick in their shares. On the flip side, the Media sector witnessed a significant decline, with a notable drop of 2.54%. Among the companies affected, D.B.Corp Ltd. and Network18 Media & Investments Ltd. suffered losses, both registering a downturn of -4.99%.

Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs) showcased robust activity, with a buy value of Rs. 19,849.42 crore and a sale value of Rs. 17,082.67 crore. Consequently, the net value stood at Rs. 2,766.75 crore. On the other hand, Domestic Institutional Investors (DIIs) also exhibited significant participation, recording a buy value of Rs. 13,638.83 crore and a sale value of Rs. 11,488.95 crore, resulting in a net value of Rs. 2,149.88 crore.

Bank Nifty

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

The gainers included Kotak Bank with a 2.56% increase, Axis Bank with a 2.11% increase, Bank of Baroda with a 1.40% increase, ICICI Bank with a 1.01% increase, and Federal Bank with a 1.00% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 1.49% decline, AU Bank with a 0.66% decline, and State Bank of India with a 0.03% decline. These results suggest that some of the banking stocks performed better for the day.

Rupee Strengthens Against Dollar Amidst Equity Rally

The Indian rupee showcased resilience against the US dollar, appreciating by 7 paise to settle at 82.83 on Wednesday. This uptick was propelled by the weakening of the American currency against major counterparts worldwide and a robust performance in domestic equities.

Despite these gains, the local currency faced pressure from soaring crude oil prices in international markets, which hindered further appreciation. At the interbank foreign exchange market, the rupee opened at 82.90, fluctuating between a high of 82.82 and a low of 82.91 against the greenback during intra-day trading. Ultimately, it closed at 82.83, marking a modest gain from its previous close.

In contrast, the dollar index, measuring the dollar’s strength against a basket of six currencies, dipped by 0.19% to 103.55, reflecting its weakened position globally. Concurrently, Brent crude futures, the global oil benchmark, saw a 0.77% increase, reaching $82.67 per barrel, further adding to market volatility.

While the rupee’s performance demonstrates its resilience, ongoing fluctuations underscore the importance of monitoring global economic indicators and market dynamics for informed decision-making in currency trading and investment strategies.

Stocks Highlights

Bajaj Auto Ltd. (Bajaj Auto) witnessed a notable uptick of 3.43%, reaching Rs 8,638.00 from its previous close of Rs 8,351.75. This surge is attributed to the company’s new dividend policy, which ties dividend payouts to cash reserves, potentially leading to significant increases in dividends for FY23 and beyond. Additionally, Bajaj Auto’s zero debt status over the past five years, coupled with minimal expenses towards interest and employee costs, indicate a strong financial position. A bullish trend is further supported by a 20-day moving average crossover on Mar 04, 2024, historically resulting in an average price gain of 2.61% within seven days.

Conversely, Adani Enterprises Ltd. (Adani Enterprises) experienced a decline of -2.18%, dropping to Rs 3,238.00 from Rs 3,310.20. Despite boasting impressive revenue growth surpassing its three-year CAGR, Adani Enterprises incurred higher expenses towards interest and employee costs. Additionally, intraday trading data over the past 19 years reveals that only 3.89% of sessions saw declines exceeding 5%, suggesting relative stability in price movements.

Advance Decline Ratio

Today, the advance-decline ratio was 0.28, and the market breadth was negative. The volatility index India Vix decreased by 0.59 percent to settle at 14.30 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 558
Decliners – 2009
52Wk High –  66
52Wk Low – 62
High Band Hitters – 44
Low Band Hitters – 266
200d SMA – 20146
50d SMA – 21845
20d SMA – 22097

Top Gainers and Losers Stocks

The top gainers were Bajaj Auto (+3.43%), Kotak Bank (+2.56%), Bharti Airtel (+2.37%), SBI Life (+2.17%), and Axis Bank (+2.11%).

The top losers were Adani Enterprises (-2.18%), NTPC (-1.88%), UltraTech Cement (-1.83%), BPCL (-1.33%), and ONGC (-1.15%).

Top Gainers and Losers Sector

The top gainers sector were IT (+0.77%), Pharma (+0.64%), Financial Services (+0.63%), FMCG (+0.42%), and Auto (+0.28%).

The top losers sector were Media (-2.54%), Realty (-1.34%), Oil & Gas (-1.03%), Metal (-0.52%).

SECTORS – NOTABLE ACTION
IT +0.77%
PHARMA +0.64%
FINANCIAL SERVICES +0.63%
MEDIA -2.54%
REALTY -1.34%
OIL & GAS -1.03%

Stocks Ban List

(SEBI) F&O ban list (ZEEL open at -155.50 and close at -154.05) 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.

SAIL, HINDCOPPER, MANAPPURAM, BHEL, and RBLBANK stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 22250 to 22600 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Indian Stocks Close Lower After Four-Day Winning Streak
Energy and Bank Shares Drive Nifty to New Highs in Volatile Monday Trade
Special Trading Session on March 2 NSE Nifty 50 Soars to New Heights in Benchmark Indices

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