Nifty Hits Record High as Indian Equity Indices Close Higher Pre-FOMC Minutes

At the close, the Nifty 50 was at 22,753.80 up by 0.49%

The NSE Nifty 50 commenced the trading day on a positive note, experiencing a modest increase of 0.49 percent and closing in the green. Surpassing the 22,750 mark, the index showcased resilience amidst a backdrop of rising metal stocks and heavyweight indices. Wednesday’s trading session saw the Nifty maintaining its upward trajectory, following its recent record highs.

However, market movements remained subdued as investors adopted a cautious approach, awaiting crucial economic data, particularly the US CPI inflation figures, which could influence the Federal Reserve’s monetary policy decisions. Amidst this anticipation, Indian equity indices concluded on a positive note, with the Nifty reaching a fresh record high of 22,753.80, marking a gain of 111.05 points.

The day witnessed Indian markets sustaining their upward momentum, bolstered by encouraging performances in the broader market. Nonetheless, the pace of growth slightly lagged behind Asian and European counterparts. Investor focus remains on the forthcoming release of the FOMC minutes and US inflation data, with expectations leaning towards a potential surge in inflation following robust US job data. This anticipation diminishes prospects of an immediate rate cut.

Moreover, Fitch’s recent downgrade of China’s credit rating has sparked concerns about potential ripple effects across the global economy, prompting a cautious approach among investors. As market participants navigate through these economic indicators and global developments, prudent decision-making becomes paramount to navigate potential uncertainties and capitalize on emerging opportunities in the evolving market landscape.

Bank Nifty: Up by 0.53%

The Bank Nifty and BSE Sensex demonstrated positive movements in Wednesday’s trading session. The Bank Nifty initiated the day on a positive note, opening in the green and registering a gain of 0.53 percent. It maintained its upward trajectory throughout the day, ultimately closing in the green at 48,986.60, indicating a bullish sentiment in the banking sector.

Similarly, the BSE Sensex displayed resilience, advancing by 0.47 percent during the trading session. It concluded the day on a high note, reaching a closing value of 75,038.15.

In the sectorial front, the media sector has exhibited notable growth, with a significant increase of 1.80%. Leading this surge, Sun TV Network Ltd. experienced a remarkable gain of 6.10%, while Zee Entertainment Enterprises Ltd. also saw a substantial rise of 2.39%.

However, contrasting this positive trend, the pharmaceutical sector faced a downturn, registering a loss of 0.34%. Notably, Natco Pharma Ltd. experienced a significant decline of -3.33%, while Aurobindo Pharma Ltd. saw a decrease of -1.85%.

Foreign Institutional Investors (FIIs/FPIs) displayed a strong bullish sentiment, with a buy value of Rs. 13,344.95 crore and a sale value of Rs. 10,566.78 crore, resulting in a net value of Rs. 2,778.17 crore. Conversely, Domestic Institutional Investors (DIIs) exhibited relatively balanced activity, with a buy value of Rs. 12,342.51 crore and a sale value of Rs. 12,179.15 crore, leading to a net value of Rs. 163.36 crore.

Bank Nifty

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

The gainers included IDFC First Bank with a 2.74% increase, Punjab National Bank with a 2.72% increase, Federal Bank with a 2.34% increase, Kotak Bank with a 2.26% increase, and Bank of Baroda with a 1.77% increase. On the other hand, the biggest losers in the sector included HDFC Bank with a 0.88% decline, and IndusInd Bank with a 0.32% decline. These results suggest that most of the banking stocks performed better for the day.

Rupee Strengthens Against US Dollar Amidst Market Optimism

The Indian rupee showcased resilience against the US dollar, appreciating by 12 paise to close at 83.19 (pro) on Wednesday. This positive movement was fueled by robust performances in equity benchmarks, which soared to all-time highs. Additionally, the weakened greenback against major global currencies contributed to bolstering investor confidence.

Commencing trading at 83.23 against the dollar, the rupee reached an intraday high of 83.15 before settling at 83.19 (pro), marking a 12 paise increase from its previous close. Notably, on Monday, the rupee maintained stability, closing at 83.31 against the US dollar, while forex and money markets remained closed on Tuesday due to ‘Gudhipadwa’ festivities.

Looking ahead, the rupee is expected to trade with a slight positive bias, buoyed by the optimistic tone in domestic markets and the relative softness of the US dollar. Furthermore, the easing of crude oil prices from higher levels may lend further support to the domestic currency.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, saw a marginal decline of 0.09% to 104.05. In contrast, Brent crude futures, the global oil benchmark, experienced a modest increase of 0.31%, reaching $89.70 per barrel.

In summary, the rupee’s recent appreciation against the US dollar reflects market optimism driven by strong domestic performances and favorable global dynamics, with expectations of continued stability in the near term.

Stocks Highlights

Coal India Ltd. witnessed a significant uptick in its share price, rising by 3.56% to reach Rs 455.50 from its previous close of Rs 439.85. Notably, only 0.57% of trading sessions in the past 13 years experienced intraday declines exceeding 5%, highlighting the stock’s historical resilience. Moreover, the company’s prudent financial management is evident, with minimal expenditure on interest and a reasonable allocation towards employee costs, accounting for 35.74% of operating revenues.

However, recent signals indicate a potential downturn, as a 14-day moving average crossover suggests a sell signal, historically resulting in an average price decline of -2.9% within 7 days. Despite this, Coal India Ltd. has delivered impressive returns compared to the Nifty 100, boasting a 3-year return of 239.65% versus the index’s 55.62%.

On the other hand, HDFC Life Insurance Company Ltd. experienced a slight decline of -2.04% in its share price, trading at Rs 621.00 from its previous close of Rs 633.95. While only 0.63% of trading sessions in the last 6 years saw intraday declines exceeding 5%, the company maintains a conservative financial approach, with minimal expenditure on interest and a modest allocation towards employee costs.

However, investors should note the stock’s underperformance compared to both the Nifty 100 and Nifty Financial Services index, with a 3-year return of -8.76% against their respective gains of 55.62% and 40.68%. These contrasting market movements highlight the importance of thorough analysis and diversified investment strategies in navigating today’s dynamic market landscape.

Advance Decline Ratio

Today, the advance-decline ratio was 1.10, and the market breadth was positive. The volatility index India Vix decreased by 2.17 percent to settle at 11.11 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1334
Decliners – 1212
52Wk High –  111
52Wk Low – 5
High Band Hitters – 81
Low Band Hitters – 70
200d SMA – 20552
50d SMA – 22123
20d SMA – 22261

Top Gainers and Losers Stocks

The top gainers were Coal India (+3.56%), BPCL (+3.46%), ITC (+2.26%), Kotak Bank (+2.26%), and Hindalco (+2.26%).

The top losers were HDFC Life (-2.04%), Cipla (-1.68%), Maruti (-1.65%), Divi’s Laboratories (-1.58%), and Shriram Finance (-1.21%).

Top Gainers and Losers Sector

The top gainers sector were Media (+1.80%), Oil & Gas (+1.50%), FMCG (+1.23%), Metal (+1.18%), and Consumer Durables (+0.68%).

The top losers sector were Pharma (-0.34%), and Auto (-0.06%).

SECTORS – NOTABLE ACTION
MEDIA +1.80%
OIL & GAS +1.50%
FMCG +1.23%
PHARMA -0.34%
AUTO -0.06%

Stocks Ban List

(SEBI) F&O ban list (HINDCOPPER open at +359.70 and close at -357.85), (EXIDEIND open at +383.90 and close at -383.95), (INDIACEM open at -226.85 and close at +228.55), (IDEA open at -12.80 and close at -12.95), (ZEEL open at -147.50 and close at +150.30), (SAIL open at +153.00 and close at +153.05), and (BANDHANBNK open at -182.50 and close at -182.65) 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.

PEL, BALRAMCHIN, NATIONALUM, TATACHEM, GNFC, and ABFRL 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, 22600 to 22900 is the Nifty 50 trading range.

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