Nifty Extends Rally for 8th Straight Session on Strong Buying

At the close, the Nifty 50 was at 17,812.40 up by 0.51%

The NSE Nifty 50 began the day on a high note and registered a notable gain of 0.51 percent. Closing in the green, which signifies a higher closing value than the previous day’s value, further adds to the positive sentiment. Additionally, crossing the significant psychological threshold of 17800 is a positive indicator for the market. However, it’s important to remember that the stock market can be volatile, and a longer-term perspective may be required to assess the overall market health.

Nifty indices continued their upward trend for the eighth consecutive session on Wednesday, driven by strong demand for IT, healthcare, and auto stocks. This growth was largely fueled by consistent inflows from foreign funds. Furthermore, traders noted that a strengthening rupee and a positive opening in European markets helped boost market sentiment.

Later in the day, TCS was set to initiate the Q4 earnings season, with industrial production data for February and inflation rates for March scheduled for post-market hours. Despite potential market fluctuations, the NSE Nifty gained 90.10 points or 0.51 percent, ultimately closing at 17,812.40. Overall, these developments signal a positive trend in the market.

During afternoon trading, equity markets in Europe showed gains. Conversely, US markets closed with mostly lower results during overnight trading on Tuesday. Meanwhile, the rupee showed a slight improvement, closing 3 paise higher at 82.09 (provisional) against the US dollar on Wednesday.

Bank Nifty: Up by 0.46%

Bank Nifty and BSE Sensex have shown positive growth. The Bank Nifty opened in the green and saw an increase of 0.46 percent, ultimately closing in the green at 41,557.95. The BSE Sensex also opened positively with a gain of 0.39 percent and reached a high of 60,392.77 before closing in the green. These gains are indicative of positive sentiment in the market, but as with any investment, it’s important to maintain a long-term perspective and consider a variety of factors that can impact market performance.

Ahead of the upcoming Q4 earnings season and the release of key economic data, the domestic market showed signs of cautiousness. However, the IT sector provided a glimmer of optimism, as investors eagerly awaited the earnings releases of major companies within this sector. This indicates that there is still interest in the market, but investors may be exercising caution and closely monitoring developments as they occur.

In terms of sectoral performance, the pharma sector showed the greatest gains, rising by 2.23 percent. Within this sector, Divi’s Laboratories saw a significant increase of 9.65 percent, while Laurus Labs and Auro Pharma saw gains of 7.07 percent and 3.57 percent, respectively. The IT sector also saw positive gains, rising by 1.06 percent, with Infosys, COFORGE, and LTIM all experiencing increases of 1.63 percent, 1.53 percent, and 1.21 percent, respectively. However, the media sector experienced a decline of 0.58 percent, while the FMCG sector also saw a decrease of 0.34 percent.

Bank Nifty

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

The gainers included HDFC Bank with a 1.30% increase, ICICI Bank with a 1.03% increase, AU Bank with a 0.69% increase, IDFC First Bank with a 0.37% increase, and IndusInd Bank with a 0.05% increase. On the other hand, the biggest losers in the sector included Federal Bank with a 0.82% decline, State Bank of India with a 0.55% decline, Punjab National Bank with a 0.32% decline, Bank of Baroda with a 0.26% decline, and Bandhan Bank with a 0.21% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

On Wednesday, Nestle India announced an interim dividend of Rs. 27 for the year 2023, to be paid to the entire issued share capital. The board of the company, in a meeting held on Wednesday, approved the dividend, which amounts to Rs. 27 per equity share of Rs. 10 each for the year 2023. According to a regulatory filing, the dividend will be paid on and from May 8, 2023, to shareholders holding 9,64,15,716 equity shares of the nominal value of Rs.10 each. Nestle India follows the January-December calendar year as its financial year and has also indicated that the interim dividend for 2023 will be paid along with the final dividend for 2022, if approved by the members at the 64th Annual General Meeting scheduled to be held on April 12, 2023.

In the final hour of trade on April 12, Max Healthcare Institute hit its highest level in 52 weeks following a deal in the open market for 1.8 crore shares, equivalent to a 1.85 percent stake. The transaction, executed at an average of Rs 451.5 per share, resulted in a deal value of Rs 807.1 crore. However, the buyers and sellers could not be identified immediately. Max Healthcare’s stock settled around 6.23 percent higher at Rs 479 on the National Stock Exchange and had surged to a 52-week high of Rs 486.25 intraday after the deal. Two crore shares were traded on the bourses, as compared to the one-month daily traded average of 21 lakh shares.

Advance Decline Ratio

Today, the advance-decline ratio was 1.52, and the market breadth was positive. The volatility index India Vix increased by 2.48 percent to settle at 12.27 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1383
Decliners – 907
52Wk High –  44
52Wk Low – 10
High Band Hitters – 110
Low Band Hitters – 27
200d SMA – 17535
50d SMA – 17503
20d SMA – 17231

Top Gainers and Losers Stocks

The top gainers were Divi’s Laboratories (+9.65%), Bajaj Auto (+2.55%), Adani Enterprises (+2.49%), Eicher Motors (+2.44%), and Dr. Reddy (+2.22%).

The top losers were Power Grid (-1.66%), NTPC (-1.38%), Nestle India (-1.09%), UltraTech Cement (-0.79%), and Hindustan Unilever (-0.77%).

Top Gainers and Losers Sector

The top gainers sectors were Pharma (+2.23%), IT (+1.06%), Auto (+0.94%), Financial Services (+0.61%), and Metal (+0.48%).

The top losers sectors were Media (-0.58%), and FMCG (-0.34%).

The Nifty Midcap 50 was up by 0.45 percent, while the Nifty Small Cap 50 was up by 0.53 percent on the day.

The Nifty Midcap 50 index currently closed at 8,646.40, while the Nifty Small Cap 50 index currently closed at 4,254.10.

SECTORS – NOTABLE ACTION
PHARMA +2.23%
IT +1.06%
AUTO +0.94%
MEDIA -0.58%
FMCG -0.34%

Stocks Ban List

(SEBI) F&O ban list (DELTACORP open at 187.30 and close at 190.60) is not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned DELTACORP from trading in the futures and options (F&O) segment of 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.

IBULHSGFIN has the possiblities of enterance in the ban list.

Daily Pivots

As per the above pivots data, 17740 to 17860 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Seventh-Day Rally Propels Nifty Above 17,700
Market Ends with Marginal Gains after Early Surge
NSE Nifty Extends Winning Streak to Fifth Session on Surprise RBI Decision

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