Nifty Breaks 19,650 Hurdle, Banking Pack Strengthens

At the close, the Nifty 50 was at 19,727.05 up by 0.59%

Despite a rocky start, the market rebounded impressively, maintaining its upward trajectory and closing higher for the fifth consecutive session, showing resilience in the face of unfavorable global signals.

Today, the NSE Nifty 50 began in the red but quickly turned things around, gaining 0.59 percent and ultimately finishing in the green, with the Nifty index surpassing the 19,700 mark, reflecting a positive market sentiment.

Foreign inflows into the market remained inconsistent, influenced by the depreciating rupee and global economic uncertainties. Remarkably, this market rally continued even in the midst of weakness observed in Asian and US markets, highlighting investors’ enduring optimism regarding India’s long-term growth potential.

Initially, the domestic market struggled to gain traction, influenced by subdued global cues. However, as the trading day progressed, a decline in US bond yields and a decrease in crude oil prices injected a sense of positivity and buoyancy into the market. These developments underscore the fluid and ever-changing nature of financial markets, where local dynamics can often outweigh global headwinds.

Bank Nifty: Up by 1.06%

The Bank Nifty index has recently shown a significant breakout on the daily chart, and this breakout has been accompanied by a notable surge in trading volumes. This development is a positive sign for the banking sector.

The Bank Nifty has successfully broken out of a three-day accumulation stage on the upside, indicating the initiation of the next upward movement. What’s particularly encouraging is that both daily and hourly momentum indicators are in alignment with the price action, which is likely to bolster the current upward trajectory.

On the trading front, the Bank Nifty started the day on a low note but managed to gain momentum as the session progressed, ultimately closing with a 1.06 percent increase at 44,878.35. Similarly, the BSE Sensex exhibited positive performance, showing a 0.58 percent gain and concluding at a high of 66,265.56.

These developments in the banking and broader stock markets suggest a resurgence in investor confidence and optimism, driven by favorable technical patterns and strong trading volumes. As always, investors should remain vigilant and continue monitoring market conditions for informed decision-making.

In the current sectorial market trends, the realty sector is showing impressive gains, with an increase of 1.48%. Notably, Macrotech Developers Ltd. stands out as a top performer, having gained 2.49%, closely followed by DLF Ltd. with a gain of 2.41%.

Conversely, the FMCG (Fast-Moving Consumer Goods) sector is experiencing a slight downturn, with a decrease of 0.41%. Tata Consumer Products Ltd. is among the top losers within this sector, with a notable loss of -2.27%, and Radico Khaitan Ltd. also recorded a loss of -1.42%.

Bank Nifty

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

The gainers included IndusInd Bank with a 2.08% increase, Bandhan Bank with a 1.92% increase, State Bank of India with a 1.77% increase, Punjab National Bank with a 1.37% increase, and Axis Bank with a 1.22% increase. On the other hand, the biggest losers in the sector included IDFC First Bank with a 1.69% decline. These results suggest that some banking stocks performed better for the day.

Buzz

The Indian rupee has witnessed a significant decline, hitting a new record low in its closing value against the US dollar. This trend is in line with the broader weakening of Asian currencies, primarily driven by expectations of robust demand for the US dollar, supported by resilient US yields.

At the start of the trading day, the rupee opened at 83.14 against the dollar and experienced an intraday low of 83.11, coming dangerously close to the record low of 83.29 recorded in October 2022. The day concluded with the Indian rupee settling at an all-time low in terms of closing values, at 83.21 per dollar. This represents a 0.09 percent decline from its previous closing rate of 83.14.

Several factors contribute to this scenario, including disappointing economic data from Europe, which could further bolster the US dollar. Additionally, concerns about global economic growth and the consistent rise in US treasury yields are exerting downward pressure on the Indian rupee.

The Reserve Bank of India’s intervention in the foreign exchange market appears to have primarily focused on supplying dollars without altering the rupee’s weakening trajectory, as the dollar maintains its momentum. These developments underscore the complex interplay of economic forces influencing currency markets, highlighting the need for prudent monetary policy and risk management strategies in this volatile environment.

Buzzing

Larsen & Toubro Ltd. has exhibited a notable uptrend in its share price, marking an increase of 4.24% compared to its previous closing price of Rs 2,730.45. The current trading price for Larsen & Toubro Ltd. stock stands at Rs 2,846.10, indicating positive market sentiment surrounding the company.

One of the key highlights of Larsen & Toubro Ltd.’s performance is its impressive annual revenue growth of 17.31%, which significantly outpaces its 3-year Compound Annual Growth Rate (CAGR) of 7.93%.

Furthermore, it’s worth noting that the company has maintained a healthy financial profile. Larsen & Toubro Ltd. has allocated a modest 1.75% of its operating revenues towards interest expenses, indicating efficient debt management. Additionally, the allocation of 20.3% of operating revenues towards employee costs showcases the company’s commitment to its workforce.

The share price of Oil And Natural Gas Corporation Ltd. (ONGC) experienced a marginal decline, with a decrease of -0.98% compared to its previous closing price of Rs 183.05. As of the latest trading session, ONGC’s stock is valued at Rs 181.25.

One of the noteworthy aspects of ONGC’s performance is its robust annual revenue growth, which stands at an impressive 28.41%. This growth rate surpasses its 3-year Compound Annual Growth Rate (CAGR) of 16.24%, reflecting the company’s ability to consistently enhance its revenue streams.

In terms of financial stability, ONGC appears to be managing its resources efficiently. The allocation of just 1.25% of its operating revenues toward interest expenses indicates prudent debt management. Additionally, the allocation of 2.36% of operating revenues towards employee costs suggests a balanced approach to workforce management.

Advance Decline Ratio

Today, the advance-decline ratio was 1.43, and the market breadth was positive. The volatility index India Vix increased by 1.82 percent to settle at 10.87 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1411
Decliners – 986
52Wk High –  158
52Wk Low – 7
High Band Hitters – 98
Low Band Hitters – 19
200d SMA – 18399
50d SMA – 19500
20d SMA – 19428

Top Gainers and Losers Stocks

The top gainers were Coal India (+6.92%), Larsen & Toubro (+4.24%), IndusInd Bank (+2.08%), SBI Life (+1.80%), and SBIN (+1.77%).

The top losers were Tata Consumer (-2.27%), ONGC (-0.98%), Britannia (-0.90%), M&M (-0.77%), and Sun Pharmaceutical (-0.73%).

Top Gainers and Losers Sector

The top gainers sectors were Realty (+1.48%), Media (+1.09%), Financial Services (+1.02%), Consumer Durables (+0.61%), and Auto (+0.47%).

The top losers sectors were FMCG (-0.41%), Pharma (-0.32%), and Metal (-0.04%).

The Nifty Midcap 50 was up by 0.45 percent, while the Nifty Small Cap 50 was up by 0.61 percent on the day.

The Nifty Midcap 50 index currently closed at 11,520.80, while the Nifty Small Cap 50 index currently closed at 5,860.80.

SECTORS – NOTABLE ACTION
REALTY +1.48%
MEDIA +1.09%
FINANCIAL SERVICES +1.02%
FMCG -0.41%
PHARMA -0.32%
METAL -0.04%

Stocks Ban List

(SEBI) F&O ban list  (IBULHSGFIN open at +190.00 and close at -189.60), (SAIL open at -99.10 and close at +99.55), (MANAPPURAM open at -147.60 and close at -144.80), (DELTACORP open at -185.75 and close at -184.55), (INDIACEM open at -254.05 and close at -251.10), (BALRAMCHIN open at +415.00 and close at +414.00), (HINDCOPPER open at -164.00 and close at -162.70), and (BHEL open at -135.80 and close at +137.70) 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.

PNB, ZEEL, and NMDC stocks has the possibilities of enterance in the ban list.

Daily Pivots

As per the above pivots data, 19600 to 19800 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Index Rebound Hindered by Banking Underperformance
Nifty Gaps Up, Consolidates in Narrow Range
Indian Shares Surge Metals & IT Gain on China Stimulus and Fed Expectations
Domestic Markets Surge Positive GDP & Manufacturing PMI

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