Nifty Ends 149 Points Higher with Inside Bar Candle Formation

At the close, the Nifty 50 was at 22,146.65 up by 0.68%

On March 14, the Indian stock market witnessed a significant turnaround, with the NSE Nifty 50 index starting on a downtrend but closing in the green, marking a gain of 0.68 percent. The benchmark indices showed resilience as Nifty soared past the 22,100 mark amidst widespread buying across various sectors. Throughout the trading session, the market showcased a remarkable recovery, with Nifty even crossing the 22,200 mark at one point. This surge was fueled by a robust performance in the Mid and Smallcap segments, offsetting the subdued performance in BankNifty.

Despite initial volatility, the market showcased a strong rebound, largely attributed to leverage-based square-offs and sustained institutional buying. Additionally, positive domestic economic indicators contributed to the bullish sentiment, with wholesale price inflation (WPI) hitting a four-month low of 0.2% YoY in February. This development is expected to ease the upcoming consumer price index (CPI) trajectory, paving the way for potential rate cuts in the future.

While the sentiment remains cautious amid consolidation around the lower half of the previous session’s candle, technical indicators suggest a possibility of a bullish trend reversal. Although the market faced challenges, particularly in the banking sector, the broader market outperformed the headline indices, leveraging opportunities in Mid and Smallcap stocks. Overall, the market’s resilience and positive economic indicators indicate a promising outlook for investors in the Indian equities.

Bank Nifty: Down by 0.41%

On the trading day, the Bank Nifty initiated on a negative note, marking a decline of 0.41%, and concluded the session in the red zone, settling at 46,789.95. Conversely, the BSE Sensex exhibited contrasting behavior, witnessing a rise of 0.46% and closing in the green at a high of 73,097.28.

Divergent Trends in Banking Sector The Bank Nifty’s downward trajectory reflects challenges within the banking sector, possibly influenced by various factors such as economic conditions, regulatory changes, and market sentiment. However, despite this decline, individual banking stocks may demonstrate varying performances based on their specific dynamics and market positioning.

In the sectorial front, the Oil & Gas sector witnesses a notable surge of 2.51%. Notably, Adani Total Gas Ltd. stands out with an impressive gain of 11.23%, closely followed by Indian Oil Corporation Ltd. with a rise of 4.38%. Conversely, Financial Services encounter a slight setback, experiencing a decline of 0.09%. Within this sector, Axis Bank Ltd. records a loss of -1.79%, while Bajaj Finance Ltd. follows suit with a decrease of -1.18%.

Foreign Institutional Investors (FII/FPI) engaged in market activities with a buy value of Rs. 19,814.37 crore and a sale value of Rs. 21,170.66 crore. Consequently, the net value stood at -Rs. 1,356.29 crore.Similarly, Domestic Institutional Investors (DIIs) participated in market transactions, with a buy value of Rs. 10,729.35 crore and a sale value of Rs. 10,589.88 crore, resulting in a net value of Rs. 139.47 crore.

Bank Nifty

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

The gainers included Punjab National Bank with a 1.56% increase, IDFC First Bank with a 1.48% increase, AU Bank with a 1.40% increase, Bandhan Bank with a 1.01% increase, and Kotak Bank with a 0.60% increase. On the other hand, the biggest losers in the sector included Axis Bank with a 1.79% decline, IndusInd Bank with a 1.41% decline, Federal Bank with a 1.21% decline, State Bank of India with a 0.84% decline, and Bank of Baroda with a 0.73% decline. These results suggest that some of the banking stocks performed better for the day.

Rupee Marginally Depreciates Against USD

On Thursday, the Indian rupee saw a marginal depreciation of 1 paisa, settling at 82.82 (pro) against the US dollar. This dip was influenced by the robust performance of the greenback against major global currencies and the escalating prices of crude oil.

Resilience Amidst External Pressures Despite the challenges posed by external factors, the domestic equity markets exhibited a firm trend, providing support to the local currency and mitigating further decline. Throughout the trading session, the rupee fluctuated between an intra-day low of 82.89 and a high of 82.82 against the dollar.

Steady Recovery The rupee’s final settlement at 82.82 (pro) against the dollar marked a marginal loss of only 1 paisa from its previous closing value of 82.81. This resilience hints at the currency’s ability to withstand external pressures.

Global Market Dynamics The dollar index, reflecting the greenback’s strength against a basket of major currencies, showed a modest uptick of 0.07%, reaching 102.47. Concurrently, Brent crude futures, the global oil benchmark, rose by 0.77% to $84.68 per barrel, further impacting currency markets.

As market dynamics continue to evolve, monitoring currency fluctuations and external factors such as oil prices remains crucial for investors and businesses alike. The rupee’s ability to hold ground amidst external pressures underscores the resilience of India’s economic landscape.

Stocks Highlights

Adani Enterprises Ltd.: Rising Momentum

Adani Enterprises Ltd. witnessed a significant uptick in its share price, soaring by 6.15% from its previous close of Rs 2,906.20 to reach Rs 3,085.00. Notably, only 3.91% of trading sessions in the last 19 years experienced intraday declines exceeding 5%, highlighting the rarity of such occurrences.

Robust Revenue Growth The company’s annual revenue growth of 96.18% outpaced its 3-year Compound Annual Growth Rate (CAGR) of 45.79%, indicating a remarkable expansion. However, recent market indicators suggest a potential sell signal, with the emergence of a 50-day moving crossover, historically resulting in an average price decline of -5.41% within 30 days.

Financial Efficiency Adani Enterprises allocated 2.9% of its operating revenues towards interest expenses and 1.37% towards employee costs in the fiscal year ending on March 31, 2023, reflecting prudent financial management.

Axis Bank Ltd.: Facing Challenges

Conversely, Axis Bank Ltd. experienced a decline in its share price by -1.79%, falling from Rs 1,080.40 to Rs 1,061.10. In the last 19 years, only 2.25% of trading sessions witnessed intraday declines exceeding 5%, underscoring the rarity of such occurrences.

Mixed Performance Metrics Despite reporting a year-on-year (YoY) increase of 19.76% in advances, surpassing its 5-year CAGR of 11.38%, the bank’s revenue growth of 23.27% outperformed its 3-year CAGR of 9.76%. Similar to Adani Enterprises, a sell signal emerged with a 50-day moving crossover, historically leading to an average price decline of -4.48% within 30 days.

Advance Decline Ratio

Today, the advance-decline ratio was 3.64, and the market breadth was positive. The volatility index India Vix decreased by 5.69 percent to settle at 13.62 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 2022
Decliners – 556
52Wk High –  14
52Wk Low – 101
High Band Hitters – 148
Low Band Hitters – 228
200d SMA – 20244
50d SMA – 21903
20d SMA – 22218

Top Gainers and Losers Stocks

The top gainers were Adani Enterprises (+6.15%), Adani Ports (+4.83%), Hindalco (+3.75%), Hero MotoCorp (+3.68%), and ONGC (+3.37%).

The top losers were Axis Bank (-1.79%), IndusInd Bank (-1.41%), Bajaj Finance (-1.18%), JSW Steel (-1.00%), and SBIN (-0.84%).

Top Gainers and Losers Sector

The top gainers sector were Oil & Gas (+2.51%), Metal (+2.01%), Media (+1.94%), IT (+1.87%), and Pharma (+1.45%).

The top losers sector were Financial Services (-0.09%).

SECTORS – NOTABLE ACTION
OIL & GAS +2.51%
METAL +2.01%
MEDIA +1.94%
FINANCIAL SERVICES -0.09%

Stocks Ban List

(SEBI) F&O ban list (RBLBANK open at -226.85 and close at -225.50), (PEL open at -822.85 and close at +832.95), (SAIL open at -119.10 and close at +121.50), (NATIONALUM open at -137.00 and close at +141.45), (ABFRL open at -200.10 and close at +201.00), (MANAPPURAM open at -161.80 and close at +165.70), (ZEEL open at -145.40 and close at +146.90), (TATACHEM open at -1091.95 and close at +1135.25), and (HINDCOPPER open at -242.50 and close at +262.70) 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.

BHEL, PVRINOX, BANDHANBNK, BIOCON, GNFC, INDIACEM, INDUSTOWER, BALRAMCHIN, IDEA, and ASHOKLEY stocks has the possibilities of entrance in the ban list.

HINDCOPPER, stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 21900 to 22300 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Dips Below 22,000 as Selling Intensifies After Positive Opening
Indian Stock Market Witnesses Volatility Amid Global Economic Indicators
Nifty Ascending Channel Bullish Trend with Corrective Phase

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