Nifty 50’s Resilience Bouncing Back from Previous Losses

At the close, the Nifty 50 was at 22,217.45 up by 0.74%

In a bustling trading session, the NSE Nifty 50 kicked off positively before descending briefly, ultimately clinching a 0.74% gain and settling comfortably above the 22,200 level. This dynamic movement, influenced by the weekly expiry factor, witnessed the index scaling new heights on February 22, maintaining its upward trajectory for the seventh consecutive session.

Initially subdued by mixed global cues and profit-taking from the prior session, the market showcased remarkable resilience. Throughout the day, the Nifty experienced fluctuations, plunging momentarily below 21,900 but rallying strongly in the final hours on the back of robust buying across various sectors. This resurgence not only offset previous losses but also propelled the Nifty to achieve a fresh all-time high of 22,252.50.

Although mid and small-cap stocks faced early challenges, they staged a remarkable recovery, contributing significantly to the overall positive market sentiment. By day’s end, the index concluded at 22,217.45, marking an impressive uptick of 162.40 points or 0.74%.

Driven by the weekly expiry of Nifty options, the market exhibited notable volatility, bouncing back decisively from the 21-day Exponential Moving Average (EMA), as evidenced by bullish signals from momentum indicators.

Moreover, encouraging PMI data from the Eurozone and robust earnings reports from US tech giants buoyed investor confidence. Domestically, India showcased economic resilience, with improvements observed in both service and manufacturing PMI, spurring notable outperformance in discretionary stocks and capital goods. This collective momentum propelled the market to rebound from intraday lows, culminating in a positive closure.

Bank Nifty: Down by 0.21%

The Bank Nifty commenced its trading day on a negative trajectory, opening in the red with a decline of 0.21%. This downward trend persisted throughout the session, leading to a closing figure of 46,919.80, maintaining its position in the red. Conversely, the BSE Sensex displayed contrasting behavior, witnessing a gain of 0.74%. Closing in the green, the Sensex reached a high of 73,158.24, reflecting a positive sentiment in the market.

In the sectorial front, the technology sector witnessed a significant uptick, with a notable 1.94% gain. Among the frontrunners in this surge were HCL Technologies Ltd., boasting an impressive 2.85% increase, and Tata Consultancy Services Ltd., which saw a commendable 2.28% rise. However, the financial services sector didn’t fare as well, experiencing a slight dip of 0.10%. HDFC Bank Ltd. took a hit with a loss of -1.19%, closely followed by Kotak Mahindra Bank Ltd., which saw a decline of -0.98%.

Foreign Institutional Investors (FIIs/FPIs) exhibited net selling activity in the Indian market, with a sale value of Rs. 15,786.62 crore outweighing their buy value of Rs. 14,376.57 crore. This resulted in a net value of -1,410.05 crore rupees. Conversely, Domestic Institutional Investors (DIIs) demonstrated a different trend, showcasing net buying activity. Their buy value amounted to Rs. 10,473.09 crore, surpassing the sale value of Rs. 8,649.41 crore, leading to a net value of 1,823.68 crore rupees.

Bank Nifty

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

The gainers included Bandhan Bank with a 1.47% increase, Axis Bank with a 1.34% increase, ICICI Bank with a 0.91% increase, AU Bank with a 0.89% increase, and IDFC First Bank with a 0.62% increase. On the other hand, the biggest losers in the sector included IndusInd Bank with a 1.66% decline, HDFC Bank with a 1.19% decline, Kotak Bank with a 0.98% decline, and State Bank of India with a 0.59% decline. These results suggest that some of the banking stocks performed better for the day.

Indian Rupee Surges to Five-Month High on Strong Dollar Inflows

The Indian rupee surged to its strongest level in over five months on Thursday, closing at 82.84 against the U.S. dollar. This uptick was supported by gains in other Asian currencies and increased dollar inflows into domestic equity and bond markets. Notably, this marked the highest closing level for the rupee since Sept. 4, following its most significant single-session gain in nearly two months.

Throughout the trading day, the rupee fluctuated within a range of 82.84 to 82.95, compared to the previous session’s close of 82.97. The robust foreign inflows suggest a potential for further appreciation beyond 82.80. However, the Reserve Bank of India (RBI) remains vigilant, which could cap any substantial upside.

Investor confidence is bolstered by the rupee’s stability, fostering a favorable environment for carry trade opportunities. Meanwhile, Asian currencies strengthened, contributing to the dollar index’s decline to a three-week low.

Despite reduced expectations of a Federal Reserve rate cut in March or May, the dollar faced challenges, partly due to the central bank’s cautious stance on inflationary risks. Additionally, the dollar/rupee forward premiums decreased, with the one-year implied yield reaching its lowest point in two months, signaling market sentiments towards the currency pair.

Stocks Highlights

Coal India Ltd. Shows Strength with 3.48% Gain

Coal India Ltd. witnessed a significant increase in its share price, rising by 3.48% from its previous close of Rs 432.95 to reach Rs 448.00. Notably, only 0.55% of trading sessions in the last 13 years experienced intraday declines exceeding 5%, reflecting the stock’s resilience.

Moreover, the company’s annual revenue growth of 27.45% outperformed its three-year CAGR of 12.19%, indicating robust financial performance. However, a recent sell signal emerged as the 20-day moving average crossed over, historically resulting in an average price decline of -2.66% within seven days.

IndusInd Bank Ltd. Faces Downtrend with -1.66% Decline

In contrast, IndusInd Bank Ltd. observed a decline in its share price, dropping by -1.66% from its previous close of Rs 1,517.25 to Rs 1,492.00. Despite this, only 3.29% of trading sessions in the last 19 years saw intraday gains surpassing 5%.

The bank demonstrated robust loan book growth, with a YoY increase of 21.28% in advances, surpassing its five-year CAGR of 9.24%. Additionally, its annual revenue growth of 16.51% exceeded its three-year CAGR of 7.54%. A recent buy signal emerged with a 20-day moving average crossover, historically resulting in an average price gain of 4.03% within seven days.

Advance Decline Ratio

Today, the advance-decline ratio was 1.17, and the market breadth was positive. The volatility index India Vix decreased by 4.58 percent to settle at 15.20 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1342
Decliners – 1149
52Wk High –  94
52Wk Low – 8
High Band Hitters – 84
Low Band Hitters – 75
200d SMA – 19947
50d SMA – 21663
20d SMA – 21838

Top Gainers and Losers Stocks

The top gainers were Coal India (+3.48%), Bajaj Auto (+3.43%), Eicher Motors (+3.04%), ITC (+2.89%), and HCL Technologies (+2.85%).

The top losers were IndusInd Bank (-1.66%), HDFC Bank (-1.19%), BPCL (-1.14%), Kotak Bank (-0.98%), and Hindustan Unilever (-0.75%).

Top Gainers and Losers Sector

The top gainers sector were IT (+1.94%), Auto (+1.64%), Metal (+1.17%), Media (+1.01%), and FMCG (+0.98%).

The top losers sector were Financial Services (-0.10%).

SECTORS – NOTABLE ACTION
IT +1.94%
AUTO +1.64%
METAL +1.17%
FINANCIAL SERVICES -0.10%

Stocks Ban List

(SEBI) F&O ban list (BALRAMCHIN open at -375.00 and close at +381.45), (RBLBANK open at -259.10 and close at +266.55), (PEL open at +930.50 and close at +936.05), (PVRINOX open at +1390.05 and close at +1382.80), (ASHOKLEY open at -172.70 and close at +173.00), (INDUSTOWER open at -220.50 and close at +225.15), (GNFC open at -668.05 and close at +669.25), (GMRINFRA open at -86.85 and close at +87.65), (BIOCON open at -275.00 and close at -270.80), (NATIONALUM open at -158.70 and close at +161.60), (ZEEL open at -165.80 and close at +168.15), (BANDHANBNK open at -201.40 and close at +203.65), (HINDCOPPER open at -249.00 and close at +263.10), (CANBK open at +573.00 and close at +582.20), and (INDIACEM open at -243.00 and close at +248.35) 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.

ABFRL, NMDC, PNB, TATACHEM, VEDL, BHEL, MANAPPURAM, and AUROPHARMA stocks has the possibilities of entrance in the ban list.

BANDHANBNK, HINDCOPPER, CANBK, and INDIACEM stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 21950 to 22400 is the Nifty 50 trading range.

Read previous -Daily Insights- here
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This article is only for educational purposes and is not an investment advice.