Nifty 50 Skyrockets, New Highs – Is This the Peak?

At the close, the Nifty 50 was at 24,586.70 up by 0.35%

Today, the NSE Nifty 50 opened on a positive note, rising by 0.35% to close at an impressive 24,586.70, marking a fresh all-time high. The index’s upward trajectory continued for the second consecutive session on July 15, driven by strong buying across various sectors, particularly in PSU banks, although the Information Technology sector lagged behind.

Throughout the day, Nifty’s momentum pushed it past 24,600 for the first time, reaching a peak of 24,635.05. Despite mixed global cues, Indian equity indices maintained their upward trend, with broad-based gains propelling the market forward. However, analysts caution that with the market nearing expensive valuations, a temporary correction may be on the horizon.

The day’s trading showed signs of indecision, as indicated by the formation of a Doji candlestick pattern on the daily chart. A fall below 24,520 could incite near-term panic among investors. Still, many view any potential dip as a buying opportunity given the strong uptrend.

As traders eagerly await the full Union Budget 2024 presentation on July 23, historical data suggests Nifty typically moves within a 4% range on Budget day. Overall, optimism remains high, fueled by expectations from the budget, robust FII inflows, and encouraging IT sector results, despite rising CPI inflation hitting a five-month high in June.

Bank Nifty: Up by 0.34%

The Indian banking and broader equity markets kicked off the day on a positive note. The Nifty Bank index started strong, gaining 0.34% before closing the day in green territory at 52,455.90. Similarly, the BSE Sensex mirrored this upward trend, closing 0.18% higher at 80,664.86.

In the sectorial front, the oil and gas sector surged ahead, posting impressive gains of +1.99%. Among the top performers, Castrol India Ltd. stood out with a remarkable 7.30% increase. Oil & Natural Gas Corporation Ltd. also delivered strong results, rising by 5.18%. These figures underscore the sector’s robust performance and growing investor confidence.

On the flip side, the IT sector faced challenges, emerging as the top loser with a decline of -0.29%. Within this struggling sector, LTIMindtree Ltd. saw a notable drop of -1.63%, while L&T Technology Services Ltd. followed closely with a decrease of -1.33%.

Foreign Institutional Investors (FII/FPI) exhibited strong buying activity in the Indian market, with a buy value of Rs. 14,857.07 crore and a sale value of Rs. 12,172.29 crore, resulting in a net inflow of Rs. 2,684.78 crore.

On the other hand, Domestic Institutional Investors (DII) recorded buy value of Rs. 15,033.05 crore and sale value of Rs. 15,364.05 crore, leading to a net outflow of Rs. -331.00 crore from the market.

Bank Nifty

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

The gainers included Bank of Baroda with a 3.27% increase, Punjab National Bank with a 2.77% increase, State Bank of India with a 2.71% increase, Bandhan Bank with a 1.45% increase, and IndusInd Bank with a 0.66% increase.

On the other hand, the biggest losers in the sector included Axis Bank with a 0.67% decline, AU Bank with a 0.57% decline, Federal Bank with a 0.45% decline, ICICI Bank with a 0.15% decline, and IDFC First Bank with a 0.15% decline. These results suggest that some of the banking stocks performed better for the day.

Gold and Silver

Today 22 Carat Gold Price Per Gram in India (INR)

Today 24 Carat Gold Price Per Gram in India (INR)

Today Silver Price 1 Gram/KG in India (INR)

Stocks Highlights

Oil & Natural Gas Corporation Ltd. witnessed a notable increase in its share price, rising by 5.18% from its previous close of Rs 307.10 to reach Rs 323.00. The company’s Return on Equity (ROE) for the year ending March 31, 2024, stood at 14.6%, surpassing its 5-year average of 12.06%. This performance reflects the company’s efficient use of shareholder funds.

In terms of financial management, Oil & Natural Gas Corporation Ltd. allocated 1.59% of its operating revenues towards interest expenses and 1.14% towards employee costs during the same period, demonstrating prudent expense management strategies.

Regarding stock returns, the company outperformed the broader market and its sector. Over a 3-year period, Oil & Natural Gas Corporation Ltd. delivered a remarkable return of 147.56%, compared to 52.57% for the Nifty 100 index and 94.9% for the Nifty Energy index, highlighting its strong market performance and investor value.

LTIMindtree Ltd. experienced a decline in its share price, decreasing by -1.63% from Rs 5,572.65 to Rs 5,482.00. The company’s financial expenditures were managed efficiently, with less than 1% of its operating revenues allocated towards interest expenses and a significant 64.0% towards employee costs for the year ending March 31, 2024.

Comparatively, LTIMindtree Ltd. achieved a 3-year return of 41.56%, falling short of the Nifty 100 index return of 52.57%. This performance indicates the challenges faced by the company in a competitive market environment.

Advance Decline Ratio

Today, the advance-decline ratio was 1.10, and the market breadth was positive. The volatility index India Vix increased by 3.36 to settle at 14.19 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1420
Decliners – 1290
52Wk High – 181
52Wk Low – 20
High Band Hitters – 115
Low Band Hitters – 92
200d SMA – 21668
50d SMA – 23222
20d SMA – 24049

Top Gainers and Losers Stocks

The top gainers were ONGC (+5.18%), SBI Life (+2.95%), Shriram Finance (+2.88%), SBIN (+2.71%), and Bajaj Auto (+2.58%).

The top losers were LTIM (-1.63%), Asian Paint (-1.34%), Grasim (-1.33%), Tata Steel (-0.94%), and Axis Bank (-0.67%).

Top Gainers and Losers Sectors

The top gainers sector were Oil & Gas (+1.99%), Media (+1.53%), Realty (+1.34%), Pharma (+1.13%), and Auto (+1.09%).

The top losers sector were IT (-0.29%).

SECTORS – NOTABLE ACTION
OIL & GAS +1.99%
MEDIA +1.53%
REALTY +1.34%
IT -0.29%

Stocks Ban List

(SEBI) F&O ban list (GMRINFRA open at -98.00 and close at +98.09), (RBLBANK open at +246.45 and close at +246.40), (INDIACEM open at -298.00 and close at +307.40), (GNFC open at -686.25 and close at -680.80), (INDUSTOWER open at -392.05 and close at +396.55), (CHAMBLFERT open at +506.00 and close at +507.70), (IEX open at +178.25 and close at +178.22), (ABFRL open at -324.50 and close at +328.05), (PEL open at +940.25 and close at +946.10), (BALRAMCHIN open at -441.00 and close at +444.50), and (BANDHANBNK open at -193.39 and close at +195.32) 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.

HINDCOPPER, TATACHEM, IDFCFIRSTB, IDEA, SAIL, NMDC, RAMCOCEM, PNB, BIOCON, PVRINOX, IRCTC, and VEDL stocks has the possibilities of entrance in the ban list.

IEX, ABFRL, PEL, BALRAMCHIN, and BANDHANBNK stocks has the possibilities of exit from ban list.

Daily Pivots

As per the above pivots data, 24450 to 24750 is the Nifty 50 trading range.

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