Nifty Gaps Up on Strong Global Cues, Ends Range-Bound

At the close, the Nifty 50 was at 21,622.40 up by 0.75%

In a remarkable turnaround, the NSE Nifty 50 witnessed a robust recovery today, commencing the day in positive territory with a notable gain of 0.75%. Closing above the crucial 21,600 mark, the market snapped a three-day losing streak, buoyed by positive global cues and widespread buying across various sectors.

Encouragingly, the day began with a gap-up start in Nifty, followed by a range-bound movement, ultimately culminating in a positive closure. Sectors such as Oil and Gas, metals, and FMCG experienced upward movements, contributing to the market’s resurgence. However, the banking sector faced challenges, resulting in a mixed trend on the sectoral front. Nevertheless, the broader indices exhibited resilience, each gaining over a percent.

This recovery can be attributed to the prevailing sentiment of ‘purchase during market downturns’ and favorable global trends that facilitated a broad-based rebound. Despite the positive momentum, investors remain cautious, apprehensive of a potential moderation in the rally. Foreign Institutional Investors (FIIs) are adopting a risk-averse strategy, influenced by concerns about sustained interest rates and a possible deceleration in domestic earnings growth, as indicated by initial Q3 results.

Bank Nifty: Down by 0.03%

In a day marked by mixed market movements, the Bank Nifty began positively, opening in the green but concluded with a slight decline of 0.03%, settling at 45,701.15. In contrast, the BSE Sensex displayed a more optimistic trajectory, initiating an upward trend and closing with a notable gain of 0.70% at 71,683.23.

Sector-wise, the Oil & Gas sector emerged as a standout performer, experiencing a substantial uptick of 1.66%. Oil India Ltd. led the pack with an impressive gain of 4.19%, closely followed by Oil & Natural Gas Corporation Ltd. with a commendable 3.55% increase. However, the Media sector faced a setback, witnessing a decline of 0.96%. Zee Entertainment Enterprises Ltd. experienced a significant downturn with a loss of -6.33%, while Dish TV India Ltd. recorded a decline of -4.72%.

Foreign Institutional Investors (FIIs/FPIs) displayed a net selling trend with a Net Value of -3,689.68 Crores (Rs. Cr.), reflecting a higher Sale Value of 22,334.20 Crores compared to their Buy Value of 18,644.52 Crores. In contrast, Domestic Institutional Investors (DIIs) reported a net inflow, recording a Net Value of 2,638.46 Crores (Rs. Cr.), with a Buy Value of 12,777.33 Crores surpassing their Sale Value of 10,138.87 Crores.

Bank Nifty

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

The gainers included Punjab National Bank with a 3.71% increase, Axis Bank with a 1.69% increase, ICICI Bank with a 1.38% increase, Bank of Baroda with a 1.32% increase, and State Bank of India with a 0.06% increase. On the other hand, the biggest losers in the sector included IndusInd Bank with a 3.25% decline, Kotak Bank with a 0.92% decline, IDFC First Bank with a 0.81% decline, HDFC Bank with a 0.76% decline, and Bandhan Bank with a 0.62% decline. These results suggest that some of the banking stocks performed better for the day.

Rupee Gains Against US Dollar Amidst Equities Boost and Crude Oil Price Surge

The Indian rupee showcased resilience on Friday, securing a 7 paise gain to settle at 83.06 pro against the US dollar. This positive trajectory was attributed to robust domestic equity market performance and a weakened US currency globally. Despite these factors, the sharp ascent of the rupee was tempered by the rise in crude oil prices and ongoing foreign capital outflows, as noted by forex traders.

Commencing at 83.15, the rupee fluctuated between a high of 83.06 and a low of 83.16 at the interbank foreign exchange. Ultimately, it closed at 83.06 pro against the dollar, marking a noteworthy 7 paise gain from its previous closing value.

Simultaneously, crude oil prices experienced an uptick on January 19, rising by Rs. 16 to reach Rs. 6,173 per barrel in futures trade. This surge can be attributed to market participants expanding their positions in response to a robust spot demand scenario.

Stocks Highlights

Oil And Natural Gas Corporation Ltd. (ONGC) witnessed a notable surge, with its share price climbing by 3.55% from the previous close of Rs 233.55 to reach Rs 241.85. In a fact-check, it was revealed that only 1.36% of trading sessions in the last 19 years saw intraday gains higher than 5%. Moreover, ONGC outshone expectations with an impressive 3-year Revenue CAGR of 28.41%, surpassing its 16.24% CAGR. The company allocated 1.25% of operating revenues to interest expenses and 2.36% towards employee costs in the fiscal year ending March 31, 2023.

In contrast, IndusInd Bank Ltd. experienced a decline, as its share price dropped by -3.25% from the previous close of Rs 1,612.90 to Rs 1,560.50. Despite a YoY loan book growth of 21.28%, surpassing its 5-year CAGR of 9.24%, the bank faced bearish trends. IndusInd Bank’s annual revenue growth of 16.51% also outperformed its 3-year CAGR of 7.54%. Notably, a sell signal emerged with a 20-day moving crossover, historically indicating an average price decline of -3.12% within 7 days.

Advance Decline Ratio

Today, the advance-decline ratio was 2.08, and the market breadth was positive. The volatility index India Vix decreased by 1.36 percent to settle at 13.88 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1674
Decliners – 804
52Wk High –  174
52Wk Low – 6
High Band Hitters – 157
Low Band Hitters – 31
200d SMA – 19483
50d SMA – 20890
20d SMA – 21663

Top Gainers and Losers Stocks

The top gainers were ONGC (+3.55%), Bharti Airtel (+3.31%), NTPC (+3.19%), Tech Mahindra (+2.62%), and SBI Life (+2.57%).

The top losers were IndusInd Bank (-3.25%), Kotak Bank (-0.92%), HDFC Bank (-0.76%), Adani Enterprises (-0.12%), and Adani Ports (-0.09%).

Top Gainers and Losers Sector

The top gainers sector were Oil & Gas (+1.66%), Metal (+1.35%), FMCG (+1.23%), Auto (+1.07%), and IT (+0.92%).

The top losers sector were Media (-0.96%).

SECTORS – NOTABLE ACTION
OIL & GAS +1.66%
METAL +1.35%
FMCG +1.23%
MEDIA -0.96%

Stocks Ban List

(SEBI) F&O ban list (NATIONALUM open at -132.80 and close at +133.65), (BALRAMCHIN open at +388.50 and close at -382.75), (ZEEL open at +251.50 and close at -235.00), (SAIL open at +114.30 and close at +114.10), (POLYCAB open at +4500.00 and close at -4422.70), (IEX open at -138.25 and close at +140.05), (ABFRL open at +224.15 and close at +223.80), (DELTACORP open at +146.05 and close at -144.75), (METROPOLIS open at +1566.10 and close at +1603.50), (HINDCOPPER open at -256.70 and close at +264.85), (ASHOKLEY open at +175.35 and close at -172.35), (PVRINOX open at -1494.95 and close at +1502.50), and (BANDHANBNK open at +229.70 and close at -226.20) 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.

OFSS, RBLBANK, GNFC, NMDC, PNB, BHEL, INDUSTOWER, GMRINFRA, IDEA, UPL, PEL, and IRCTC stocks has the possibilities of entrance in the ban list.

DELTACORP, METROPOLIS, HINDCOPPER, ASHOKLEY, PVRINOX, and BANDHANBNK stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 21550 to 21700 is the Nifty 50 trading range.

Read previous -Daily Insights- here
NSE Nifty 50 Extends Fall, Hits Below 21,500
Banking Pack Takes a Hit as HDFC Bank’s Q3 Results Cause Market Plunge
Nifty’s Impressive 5-Day Streak Comes to an End at 22-1-24

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