Nifty Continues Winning Streak with Third Consecutive Session of Gains

At the close, the Nifty 50 was at 22,217.85 up by 0.51%

On Tuesday, the NSE Nifty 50 commenced on a positive note, exhibiting a 0.51% increase and sustained its upward trajectory throughout the trading session. Closing at 22,217.85, the index marked a gain of 0.51% or 113.80 points, buoyed by a robust performance in metal, auto, and banking sectors.

Investor sentiment remained optimistic, albeit cautious, as anticipation mounted around forthcoming US inflation reports, with a keen focus on US producer prices released on the same day.

Bullish sentiment propelled the index higher, albeit closing just below the lower band of the rising channel. While the Nifty managed to surpass the crucial threshold of 22,200, maintaining momentum within the channel remains imperative for sustained growth in the days ahead.

Amidst ongoing polling activities, market participants remain cautious, uncertain about the sustainability of the three-day rally. Nevertheless, the market demonstrated resilience, building upon Monday’s gains with a consistent upward climb.

India’s domestic market showcased resilience, supported by subdued CPI figures and positive cues from Asian markets. However, volatility persists, with range-bound trading expected amid prevailing uncertainty and low turnout concerns.

Bank Nifty: Up by 0.22%

The Bank Nifty initiated the trading session on a positive note, opening in the green with a 0.22% increase. This momentum persisted throughout the day, with the index closing higher at 47,859.45, reflecting continued optimism in the banking sector. Likewise, the BSE Sensex also experienced gains, rising by 0.45% and closing in the green at a peak of 73,104.61.

In the sectorial front, the metal sector has shown significant growth, surging by 2.77%. Notably, National Aluminium Company Ltd. demonstrated a remarkable gain of 6.78%, while Adani Enterprises Ltd. also saw a substantial increase of 5.40%.

Conversely, the FMCG sector experienced a decline, marking a loss of 0.52%. Godrej Consumer Products Ltd. faced a notable setback, witnessing a decrease of -1.86%, while United Breweries Ltd. also recorded a loss of -1.61%.

Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs) displayed net selling activity, with a sale value of Rs. 14,053.86 crore and a buy value of Rs. 9,988.34 crore. Consequently, the net value stood at a deficit of Rs. 4,065.52 crore.

Conversely, Domestic Institutional Investors (DIIs) exhibited net buying behavior, recording a buy value of Rs. 11,455.11 crore and a sale value of Rs. 7,927.25 crore. As a result, the net value for DIIs amounted to Rs. 3,527.86 crore.

Bank Nifty

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

The gainers included Punjab National Bank with a 2.76% increase, Federal Bank with a 1.42% increase, IndusInd Bank with a 1.17% increase, State Bank of India with a 1.13% increase, and Bank of Baroda with a 0.83% increase.

On the other hand, the biggest losers in the sector included Axis Bank with a 0.79% decline, and ICICI Bank with a 0.66% decline. These results suggest that most of the banking stocks performed better for the day.

Rupee Holds Steady Against US Dollar Amidst Global Market Trends

On Tuesday, the Indian rupee maintained a neutral stance, settling unchanged at 83.51 (pro) against the US dollar. Positive domestic market trends and favorable inflation data provided initial support, yet the currency faced headwinds from a robust US dollar and ongoing foreign fund outflows, exerting pressure on its performance.

The rupee’s stability is further influenced by the ongoing electoral process and persistent foreign fund outflows, with anticipation of relief post-election results.

Trading within a narrow band at the interbank foreign exchange market, the rupee opened at 83.51 and touched an intraday low of 83.52 before closing unchanged from its previous session.

Monday saw a similar trend, with the rupee consolidating within a narrow range and settling flat against the US dollar at 83.51.

In contrast, the dollar index, measuring the greenback’s strength against six major currencies, saw a slight uptick to 105.26, while Brent crude futures, the global oil benchmark, dipped marginally by 0.04% to USD 83.33 per barrel.

As market dynamics evolve, investors closely monitor these fluctuations, weighing various factors to gauge the rupee’s trajectory amidst a complex economic landscape.

Stocks Highlights

Adani Enterprises Ltd. exhibited a remarkable upswing, with its share price escalating by 5.40% to reach Rs 3,035.00, surpassing its previous closing mark of Rs 2,879.60. The company’s recent dividend declaration of Rs 1.3 per share, announced on May 2, 2024, with a record date set for June 14, 2024, further bolstered investor confidence.

Despite a contraction in sales by 28.87%, marking the first revenue decline in three years, Adani Enterprises’ stock received a notable buy signal. The emergence of a 200-day moving average crossover, a bullish indicator, signals potential price appreciation. Historical data indicates an average price gain of 8.15% within 30 days following this signal over the past five years.

Furthermore, the company’s stock returns have outpaced the Nifty 100 index, with a remarkable three-year return of 135.97%, compared to the index’s 55.21% return.

In contrast, Cipla Ltd. witnessed a downturn, with its share price declining by -3.99% to Rs 1,358.20, from its previous close of Rs 1,414.65. Despite the company’s robust return on equity (ROE) performance, which stood at 15.43% for the fiscal year ending March 31, 2024, surpassing its five-year average of 11.98%, investor sentiment remained subdued.

Quarterly revenue exhibited a decline of 5.54% compared to the previous quarter, marking the lowest performance in the last three years. Although a buy signal was triggered by a 50-day moving average crossover, historical data suggests a more modest average price gain of 4.24% within 30 days following this signal over the past five years.

Despite these challenges, Cipla Ltd. remains a fundamentally strong company, with its robust ROE performance reflecting its operational efficiency and long-term growth potential.

Advance Decline Ratio

Today, the advance-decline ratio was 3.00, and the market breadth was positive. The volatility index India Vix decreased by 1.96 percent to settle at 20.20 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1917
Decliners – 638
52Wk High – 79
52Wk Low – 16
High Band Hitters – 194
Low Band Hitters – 48
200d SMA – 20870
50d SMA – 22297
20d SMA – 22321

Top Gainers and Losers Stocks

The top gainers were Adani Enterprises (+5.40%), M&M (+4.01%), Hero MotoCorp (+3.37%), ONGC (+2.85%), and Larsen & Toubro (+2.46%).

The top losers were Cipla (-3.99%), TCS (-1.16%), Tata Consumer (-1.00%), Nestle India (-0.88%), and Axis Bank (-0.79%).

Top Gainers and Losers Sector

The top gainers sector were Metal (+2.77%), Auto (+1.83%), Oil & Gas (+1.56%), Consumer Durables (+0.89%), and Realty (+0.88%).

The top losers sector were FMCG (-0.52%), and Pharma (-0.41%).

SECTORS – NOTABLE ACTION
METAL +2.77%
AUTO +1.83%
OIL & GAS +1.56%
FMCG -0.52%
PHARMA -0.41%

Stocks Ban List

(SEBI) F&O ban list (PEL open at -829.90 and close at +830.25), (ZEEL open at -130.40 and close at +131.70), (HINDCOPPER open at +370.60 and close at +379.25), (BALRAMCHIN open at -373.50 and close at +378.60), (IDEA open at +12.70 and close at +13.25), (SAIL open at +158.00 and close at +164.65), (GMRINFRA open at +82.85 and close at +83.45), (CANBK open at +555.40 and close at +566.55), and (PNB open at -123.55 and close at +125.75)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, INDIACEM, LICHSGFIN, BANDHANBNK, BIOCON, ABCAPITAL, IDFCFIRSTB, ABFRL, GNFC, UPL, NATIONALUM, and IEX stocks has the possibilities of entrance in the ban list.

CANBK, and PNB stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 21900 to 22250 is the Nifty 50 trading range.

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