Nifty Hits All-Time High as Oil & Gas Sector Shines, Banks Lag Behind

At the close, the Nifty 50 was at 21,853.80 up by 0.72%

In today’s dynamic stock market scenario, the NSE Nifty 50 showcased a commendable 0.72 percent increase, opening in the green at 21,850 and closing positively at 21,853.80. This upward trend can be attributed to favorable global cues that spurred substantial gains throughout the day. The market’s resilience is particularly noteworthy, considering the profit-booking activities at higher levels.

This positive movement follows a somewhat subdued response to the Provisional Budget in the preceding session. However, February 2 marked a notable rebound, resulting in the Nifty achieving a new high and registering a significant 2 percent weekly gain during this Budget week.

Analysts point out a crucial juncture for the Nifty, having surpassed the 22,000 mark but with the hourly chart displaying a dual high pattern. To confirm a bullish trend, a decisive breakout above the twin peaks at 22,125 is eagerly awaited. Conversely, a breach below the support level at 21,500 might indicate a bearish momentum. Investors are advised to closely monitor these key levels for informed decision-making in the current market scenario.

As the Nifty potentially aims for higher levels, breaching 22,150 could lead to an upward trajectory, targeting levels such as 22,500 and beyond. In navigating these market dynamics, staying vigilant and informed is crucial for strategic investment decisions.

Bank Nifty: Down by 0.47%

The Bank Nifty exhibited initial strength as it opened in the green, only to witness a subsequent decline of 0.47%. The day concluded with the index closing in the red at 45,970.95. On the other hand, the BSE Sensex displayed resilience, starting with a 0.61% surge and maintaining the momentum to close in the green, reaching a high of 72,085.63.

In the sectorial front, the Oil & Gas sector, witnessing a remarkable 3.58% gain. Leading this upward trajectory is Bharat Petroleum Corporation Ltd., demonstrating an impressive growth of 9.55%, closely followed by Indian Oil Corporation Ltd. with a gain of 9.02%. Conversely, Financial Services experienced a mild setback, registering a 0.40% decline. Within this sector, ICICI Prudential Life Insurance Company Ltd. faced a dip of -1.78%, while Axis Bank Ltd. observed a decrease of -1.53%.

Foreign Institutional Investors (FIIs/FPIs) displayed notable activity, showcasing a buy value of Rs. 15,476.31 Cr and a sale value of Rs. 15,405.62 Cr. This resulted in a modest net value of Rs. 70.69 Cr. On the domestic front, Domestic Institutional Investors (DIIs) were also active, with a buy value of Rs. 14,097.58 Cr and a sale value of Rs. 11,634.42 Cr, translating to a commendable net value of Rs. 2,463.16 Cr.

Bank Nifty

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

The gainers included Punjab National Bank with a 5.09% increase, Bandhan Bank with a 1.29% increase, Kotak Bank with a 0.09% increase, and State Bank of India with a 0.05% increase. On the other hand, the biggest losers in the sector included Axis Bank with a 1.53% decline, HDFC Bank with a 1.39% decline, AU Bank with a 0.96% decline, IDFC First Bank with a 0.96% decline, and Federal Bank with a 0.78% decline. These results suggest that some of the banking stocks not performed better for the day.

Rupee Gains Ground

The Indian rupee showcased resilience in the foreign exchange market, appreciating by 7 paise to close at 82.91 (pro) against the US dollar on Friday. This upward trajectory was buoyed by a strong performance in the domestic equities and a weakened greenback compared to major global currencies, reflecting an increased appetite for riskier assets.

The positive sentiment surrounding the rupee was further fueled by the interim Budget 2024-25, particularly emphasizing fiscal prudence. Finance Minister Nirmala Sitharaman’s commitment to an 11% hike in capital expenditure for the next fiscal year aimed at sustaining robust economic growth has left a favorable impact on the domestic currency.

Tracking the day’s movements, the rupee opened at 82.91 against the dollar, reaching an intraday high of 82.82 and a low of 82.93. Ultimately settling at 82.91 (pro) against the dollar, the currency marked a 7 paise gain from its previous close of 82.98.

Stocks Highlights

Bharat Petroleum Corporation Ltd. witnessed a significant uptick in its share price, surging by 9.55% from the previous close of Rs 508.45 to reach Rs 557.00. The company’s commendable performance is further highlighted by its impressive 3-year Revenue CAGR, with an annual growth of 35.99%, outpacing its 3-year CAGR of 18.13%. Notably, prudent financial management is evident as the company allocated less than 1% of its operating revenues to interest expenses and a mere 0.59% towards employee costs for the fiscal year ending March 31, 2023.

Conversely, Eicher Motors Ltd. experienced a decline in share price, dropping by -2.50% from the previous close of Rs 3,933.20 to Rs 3,835.00. Despite this, the company boasts a robust 3-year Revenue CAGR, with annual revenue growth standing at an impressive 40.03%, surpassing its 3-year CAGR of 15.58%. Notably, a recent bullish signal emerged with a 50-day moving crossover on January 31, 2024, historically resulting in an average price gain of 5.38% within 30 days.

Advance Decline Ratio

Today, the advance-decline ratio was 1.10, and the market breadth was positive. The volatility index India Vix increased by 1.67 percent to settle at 14.70 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1336
Decliners – 1211
52Wk High –  291
52Wk Low – 11
High Band Hitters – 144
Low Band Hitters – 50
200d SMA – 19663
50d SMA – 21246
20d SMA – 21643

Top Gainers and Losers Stocks

The top gainers were BPCL (+9.55%), Power Grid (+4.59%), ONGC (+3.84%), Adani Ports (+3.58%), and NTPC (+3.28%).

The top losers were Eicher Motors (-2.50%), Axis Bank (-1.53%), HDFC Life (-1.40%), HDFC Bank (-1.39%), and Hindustan Unilever (-0.87%).

Top Gainers and Losers Sector

The top gainers sector were Oil & Gas (+3.58%), Metal (+2.37%), IT (+2.16%), Realty (+0.95%), and Pharma (+0.74%).

The top losers sector were Financial Services (-0.40%), and FMCG (-0.18%).

SECTORS – NOTABLE ACTION
OIL & GAS +3.58%
METAL +2.37%
IT +2.16%
FINANCIAL SERVICES -0.40%
METAL -0.18%

Stocks Ban List

(SEBI) F&O ban list (INDUSTOWER open at +221.35 and close at -216.15), (INDIACEM open at -243.90 and close at -240.20), (SAIL open at -120.50 and close at +128.30), and (ZEEL open at -173.00 and close at +172.90) 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.

NATIONALUM, and HINDCOPPER stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 21700 to 22100 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Volatile Trading Day for Nifty 50 Amidst Interim Budget and Global Sentiments
Investor Confidence Soars Nifty Jumps 1% Pre-Budget and Before Fed Meeting
NSE Nifty 50 Starts Green but Closes in Red, Nifty Dips Below 21550

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