Nifty Hits Lifetime Highs, Ends Flat on Profit Taking

At the close, the Nifty 50 was at 22,642.75 down by 0.10%

Today’s trading session on the NSE Nifty 50 commenced positively but concluded with a slight downturn, closing in the red with a decline of 0.10%. Despite initial strength and reaching new lifetime highs, profit booking pressures emerged, especially ahead of significant inflation data releases for India and the US. The Nifty, after peaking at 22,768.40, retraced to close at 22,642.75, marking a decline of -23.55 points.

The Relative Strength Index (RSI) on the hourly chart indicated bearish divergence, according to technical indicators, hinting at a potential reversal in price momentum. While market fundamentals remain strong, stretched valuations prompt investors to exercise caution and adopt profit booking strategies.

Global factors, including rising crude prices and uncertainties surrounding the US Federal Reserve’s stance on interest rates, contribute to market volatility. Profit booking intensified as concerns over upcoming US inflation data and shifting expectations regarding rate cuts loom large. Geopolitical tensions in the Middle East further impact sentiment.

Anticipating Trends Q4 Earnings and Market Sentiment Investors eagerly await Q4 earnings reports, which are set to commence this weekend, for insights into corporate performance and future market trends. Despite short-term fluctuations, Indian markets have sustained an upward trajectory, driven by optimism surrounding earnings growth, a resilient economy, and robust total inflows nearing US$50 billion for FY24.

Analysts continue to hold a positive outlook on the Indian economy and markets, anticipating continued momentum throughout 2024, especially with the upcoming elections and expected policy environment. Amidst market uncertainties, a strategic approach is advised, focusing on long-term growth prospects while navigating near-term volatilities.

Bank Nifty: Up by 0.31%

Today’s trading session saw the Bank Nifty opening on a positive note, with a gain of 0.31%, maintaining momentum throughout the day to close in the green at 48,730.55. Conversely, the BSE Sensex experienced a slight dip of 0.08%, closing in the red at 74,683.70 after fluctuating during the trading session.

The Bank Nifty’s performance was characterized by resilience as it opened in the green and sustained positive momentum, culminating in a favorable closing price. This positive trend may reflect investor confidence in banking stocks or favorable market conditions within the banking sector.

In the sectorial front, the metal sector has shown promising gains, rising by 1.13%. Notably, Hindustan Zinc Ltd. has seen a substantial increase of 16.19%, while Hindustan Copper Ltd. also experienced a notable surge of 7.74%.

Conversely, the media sector has faced challenges, with a decline of 1.26%. Leading this decline is Zee Entertainment Enterprises Ltd., which experienced a decrease of -2.00%. Similarly, Sun Tv Network Ltd. witnessed a decline of -1.95%.

Foreign Institutional Investors (FIIs/FPIs) were net sellers in the Indian market, with a buy value of 13,964.84 crore rupees and a sale value of 14,558.04 crore rupees, resulting in a net value of -593.20 crore rupees. On the other hand, Domestic Institutional Investors (DIIs) emerged as net buyers, with a buy value of 11,130.49 crore rupees and a sale value of 8,873.31 crore rupees, leading to a net value of 2,257.18 crore rupees.

Bank Nifty

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

The gainers included ICICI Bank with a 1.89% increase, Federal Bank with a 0.78% increase, Axis Bank with a 0.36% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 1.11% decline, IndusInd Bank with a 1.06% decline, Bank of Baroda with a 0.78% decline, State Bank of India with a 0.42% decline, and IDFC First Bank with a 0.30% decline. These results suggest that some of the banking stocks not performed better for the day.

Stocks Highlights

Apollo Hospitals Enterprise Ltd. The share price of Apollo Hospitals Enterprise Ltd. surged by 3.13%, reaching Rs 6,505.10, indicating positive momentum. Notably, only 1.49% of trading sessions in the last 19 years witnessed intraday declines exceeding 5%, showcasing the stock’s resilience. However, cautionary signals have emerged, with a recent bearish crossover and an average price decline of -2.54% within 7 days post-signal over the past 5 years. Despite these indicators, the stock has demonstrated impressive returns, outperforming the Nifty 100 with a 3-year return of 101.39%.

In contrast, Titan Company Ltd. experienced a decline of -1.78%, settling at Rs 3,682.30. While the intraday decline rate exceeding 5% is slightly higher at 2.09%, the company maintains a relatively low expenditure on interest and employee costs. Recent market signals suggest a bearish trend, with a 5-day moving crossover signaling a potential downturn, historically resulting in an average price decline of -3.15% within 7 days. Despite these challenges, Titan Company Ltd. has delivered remarkable returns, boasting a 3-year return of 135.48%, surpassing the Nifty 100’s return of 55.83%.

Advance Decline Ratio

Today, the advance-decline ratio was 0.69, and the market breadth was negative. The volatility index India Vix decreased by 2.04 percent to settle at 11.36 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1037
Decliners – 1513
52Wk High –  136
52Wk Low – 5
High Band Hitters – 99
Low Band Hitters – 60
200d SMA – 20533
50d SMA – 22102
20d SMA – 22240

Top Gainers and Losers Stocks

The top gainers were Apollo Hospitals (+3.13%), Hindalco (+2.05%), ICICI Bank (+1.89%), Infosys (+1.39%), and Bajaj Finserv (+1.12%).

The top losers were Titan (-1.78%), Hero MotoCorp (-1.59%), Coal India (-1.52%), Reliance (-1.35%), and Asian Paint (-1.21%).

Top Gainers and Losers Sector

The top gainers sector were Metal (+1.13%), Realty (+0.53%), Financial Services (+0.36%), and IT (+0.04%).

The top losers sector were Media (-1.26%), Consumer Durables (-0.79%), FMCG (-0.62%), Oil & Gas (-0.44%), and Auto (-0.31%).

SECTORS – NOTABLE ACTION
METAL +1.13%
REALTY +0.53%
FINANCIAL SERVICES +0.36%
MEDIA -1.26%
CONSUMER DURABLES -0.79%
FMCG -0.62%

Stocks Ban List

(SEBI) F&O ban list (ZEEL open at -151.00 and close at -146.50), (SAIL open at -146.95 and close at +151.35), and (BANDHANBNK open at +185.15 and close at -182.70) 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.

INDIACEM, PEL, IDEA, NATIONALUM, GNFC, TATACHEM, ABFRL, and INDUSTOWER stocks has the possibilities of entrance in the ban list.

BANDHANBNK stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 22500 to 22800 is the Nifty 50 trading range.

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