Nifty Achieves Third Consecutive Record Close Amid Global Market Success

At the close, the Nifty 50 was at 23,557.90 up by 0.39%

The NSE Nifty 50 commenced the day on a positive note, witnessing a 0.39 percent surge, closing above the pivotal 23,500 mark. This marked its fifth consecutive day of gains, reflecting the index’s resilient upward trajectory amid a backdrop of muted intraday movements. Concurrently, the Sensex, India’s benchmark index, also achieved a fresh record high on June 18, propelled by sustained buying momentum.

The week unfolded with modest yet consistent gains, underlining the prevailing bullish sentiment. Key indices continued their ascent, bolstered by renewed interest from Foreign Institutional Investors (FIIs) and the prospect of potential rate cuts amid moderating domestic inflation.

Global cues, particularly the robust performance of major US tech firms driving the S&P 500 to its 30th all-time high, further buoyed market sentiment. Despite concerns over market breadth and US interest rates, optimism prevailed, fueled by anticipation surrounding upcoming economic data releases and Federal Reserve communications.

India’s market exuberance is not only a testament to post-election optimism but also a response to anticipated policy measures in the upcoming budget. The market’s reduced volatility in recent weeks adds credence to its short-term bullish trend, supported by a delicate balance between growth-oriented policies and populist measures.

The Indian market’s upward trajectory, mirrored by global indices, underscores a cautious yet optimistic sentiment, driven by a confluence of domestic and international factors.

Bank Nifty: Up by 0.88%

The Bank Nifty made an impressive start, opening in the green with a notable uptick of 0.88 percent. The positive momentum continued throughout the trading session, culminating in a strong close at 50,440.90, firmly in the green. Similarly, the BSE Sensex showcased robust performance, registering a 0.40 percent increase and concluding the day on a high note at 77,301.14.

In the sectorial front, the real estate sector (realty) emerged as a clear winner, with a significant gain of 1.88%. Leading the pack within this sector were The Phoenix Mills Ltd. and Mahindra Lifespace Developers Ltd., both experiencing impressive surges of 3.98% and 3.30% respectively.

On the flip side, the media sector took a tumble, ending the day as the biggest loser with a decline of 0.64%. This negativity was particularly evident in the performance of Tips Industries Ltd. and Zee Entertainment Enterprises Ltd., which saw their share prices drop by a substantial -3.74% and -2.32% respectively.

FIIs recorded a substantial buy value of Rs. 19,101.85 crore against a sale value of Rs. 16,532.45 crore, resulting in a net inflow of Rs. 2,569.40 crore.

Similarly, DIIs demonstrated a positive trend with a buy value of Rs. 13,955.22 crore and a sale value of Rs. 12,399.49 crore, yielding a net inflow of Rs. 1,555.73 crore.

Bank Nifty

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

The gainers included IDFC First Bank with a 4.32% increase, Bandhan Bank with a 2.01% increase, ICICI Bank with a 1.82% increase, Axis Bank with a 0.76% increase, and State Bank of India with a 0.73% increase.

On the other hand, the biggest losers in the sector included Punjab National Bank with a 0.15% decline. These results suggest that most 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)

Gold Prices Face Downward Pressure After Hitting Resistance

Gold prices experienced weakness after an initial flat to positive opening, losing momentum as Comex gold encountered significant resistance at $2,325. This resistance led to a downward correction, bringing prices down to $2,310. The $2,300 level now serves as a crucial support point. If Comex gold closes below this $2,300 mark, it is likely to face continued selling pressure, potentially pushing prices further down towards $2,250.

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

Indian Rupee Strengthens on Foreign Inflows and Equity Market Gains

The Indian rupee appreciated by 13 paise to settle at 83.42 against the US dollar on Tuesday. This gain was driven by fresh inflows of foreign capital and a robust trend in domestic equity markets, where benchmark indices reached new peaks. Dollar selling by public sector banks further supported the rupee. However, higher crude oil prices limited the local currency’s gains.

In the interbank foreign exchange market, the rupee opened at 83.52 and reached an intraday high of 83.39 against the greenback. It eventually settled at 83.42, up by 13 paise from its previous close of 83.55 on Friday.

The dollar index, which measures the greenback’s strength against a basket of six currencies, was trading at 105.06, an increase of 0.12%. The US dollar’s strength followed hawkish comments from Federal Reserve officials, with market participants looking for further direction from upcoming US retail sales and industrial production data.

Brent crude futures, the global oil benchmark, saw a decline of 0.33%, trading at USD 83.97 per barrel. While this decline provided some relief, higher crude oil prices overall have capped the gains of the Indian rupee.

The recent appreciation of the Indian rupee highlights the positive impact of foreign capital inflows and strong domestic equity markets. However, ongoing fluctuations in crude oil prices and global economic indicators, such as US retail sales data, remain critical factors to watch. Investors should stay attentive to these elements, as they can significantly influence the rupee’s future movements.

Stocks Highlights

Shriram Finance Ltd. Share Price Rises Amid Strong Performance
Shriram Finance Ltd. saw its share price increase by 3.22%, rising from its previous close of Rs 2,732.15 to a last traded price of Rs 2,820.00. This significant movement reflects strong market confidence. The company allocated 42.67% of its operating revenues towards interest expenses and 9.54% towards employee costs in the fiscal year ending March 31, 2024. Shriram Finance Ltd. has also outperformed major indices, delivering a remarkable 90.12% return over three years compared to the Nifty 100’s 52.57% return and Nifty Financial Services’ 34.6% return.

Maruti Suzuki India Ltd. Shares Dip Amid Bearish Signals
Maruti Suzuki India Ltd. experienced a share price decline of 2.14%, falling from Rs 12,845.20 to Rs 12,570.00. Despite this recent dip, the company has delivered a return on equity (ROE) of 15.75% for the fiscal year ending March 31, 2024, surpassing its five-year average of 11.7%. Maruti Suzuki’s financial prudence is evident with less than 1% of operating revenues spent on interest expenses and 4.44% on employee costs. However, bearish signals such as a weekly MACD crossover indicate potential challenges ahead, with historical data showing an average price decline of 5.31% within seven weeks of this signal over the past decade. The stock’s three-year return of 77.44% lags behind the Nifty Auto’s impressive 133.08% return.

Advance Decline Ratio

Today, the advance-decline ratio was 1.25, and the market breadth was positive. The volatility index India Vix increased by 1.11 to settle at 12.97 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1494
Decliners – 1191
52Wk High – 282
52Wk Low – 8
High Band Hitters – 181
Low Band Hitters – 48
200d SMA – 21251
50d SMA – 22606
20d SMA – 22937

Top Gainers and Losers Stocks

The top gainers were Shriram Finance (+3.22%), Power Grid (+3.13%), Wipro (+2.94%), ICICI Bank (+1.82%), and Titan (+1.58%).

The top losers were Maruti (-2.14%), Dr. Reddy (-1.60%), UltraTech Cement (-1.09%), Tata Steel (-1.04%), and Hindalco (-0.82%).

Top Gainers and Losers Sectors

The top gainers sector were Realty (+1.88%), Consumer Durables (+1.59%), Financial Services (+0.77%), IT (+0.59%).

The top losers sector were Media (-0.64%), Pharma (-0.35%), Metal (-0.22%), FMCG (-0.10%), and Oil & Gas (-0.05%).

SECTORS – NOTABLE ACTION
REALTY +1.88%
CONSUMER DURABLES +1.59%
FINANCIAL SERVICES +0.77%
MEDIA -0.64%
PHARMA -0.35%
METAL -0.22%

Stocks Ban List

(SEBI) F&O ban list (BALRAMCHIN open at -431.00 and close at -429.05), (HINDCOPPER open at +336.10 and close at -332.95), (SUNTV open at +760.00 and close at -757.05), (INDIACEM open at +222.00 and close at -220.61), (SAIL open at +154.39 and close at -153.41), and (GMRINFRA open at +95.10 and close at +97.84) 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.

BSOFT, PNB, HAL, PEL, IEX, BANDHANBNK, INDUSTOWER, GNFC, and ZEEL stocks has the possibilities of entrance in the ban list.

GMRINFRA stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 23400 to 23700 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.