Nifty Opens Gap Up, Records Sixth Consecutive Gains

At the close, the Nifty 50 was at 19,819.95 up by 0.47%

In the face of a globally uncertain economic landscape, the NSE Nifty 50 has demonstrated its resilience by maintaining a positive trajectory, defying weak global cues. The market opened on a positive note and displayed remarkable strength throughout the day. Commencing the session with a robust 0.47 percent gain, the Nifty 50 ultimately closed in positive territory, exceeding the 19800 mark.

This bullish momentum persisted for the sixth back-to-back session, propelling the index to a two-month high. This noteworthy performance was evident across various sectors, underscoring the breadth of the market’s gains.

It’s worth noting that global markets encountered challenges, including the impact of August’s US jobless claims data and rising gas prices due to strikes in Australia, which raised concerns about a potential international slowdown.

Nonetheless, the domestic market remained steadfast in its upward trajectory. While IT and pharma stocks experienced some selling pressure due to tepid global signals, infrastructure, industrial, and capital goods stocks thrived, fueled by improved order inflows. Furthermore, mid- and small-cap stocks continued to find favor among investors, making a substantial contribution to the ongoing bullish trend.

Bank Nifty: Up by 0.62%

After a noteworthy breakout from consolidation in the preceding trading session, the market has sustained its appeal to buyers. A promising signal is the positive crossover of the momentum indicator, reflecting a bullish sentiment among traders.

The Bank Nifty exhibited robust performance, initiating in positive territory and concluding with a substantial 0.62 percent gain at 45,156.40. Similarly, the BSE Sensex displayed resilience, marking a 0.50 percent increase and closing impressively at 66,598.91.

As the week concluded, both benchmark indices remained tantalizingly close to their all-time peaks, predominantly owing to the strong support from the Bank Nifty, which has bolstered investor confidence.

The market’s outlook appears bright, with the imminent G20 Summit expected to provide added impetus. Investor confidence remains sanguine, and the prevailing trend indicates that these indices are poised to achieve new milestones in the near term.

In the sectoral arena, the Realty sector surged notably, notching a substantial 2.12% gain. Leading this charge within the sector, Sobha Ltd. achieved an impressive 10.70% gain, closely followed by Macrotech Developers Ltd., which recorded a commendable 4.20% gain.

On the contrary, the Media sector encountered headwinds, emerging as the top decliner with a -0.97% drop. In this sector, Dish TV India Ltd. experienced a notable loss of -5.01%, while Zee Entertainment Enterprises Ltd. also faced a downturn, with a loss of -2.19%.

Bank Nifty

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

The gainers included Bandhan Bank with a 2.10% increase, Federal Bank with a 1.66% increase, AU Bank with a 1.33% increase, HDFC Bank with a 0.77% increase, and State Bank of India with a 0.75% increase. On the other hand, the biggest losers in the sector included IDFC First Bank with a 0.63% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Indian Rupee Strengthens Against US Dollar Amidst Positive Market Sentiment

The Indian rupee halted a four-day sequence of declining performance, closing 24 paise higher at 82.99 (pro) against the US dollar on Friday. Several factors contributed to this positive upswing, including a robust performance in domestic equities and what is suspected to be intervention by the Reserve Bank of India (RBI) to stabilize the currency.

Furthermore, the local currency received a boost following the RBI’s declaration of a gradual reduction in the additional cash reserve ratio by October 7, 2023. This strategic move by the central bank was aimed at injecting liquidity into the market and bolstering economic stability.

In the interbank foreign exchange market, the rupee commenced trading at 83.13 against the US dollar, exhibiting a trading range of 82.91 to 83.17 throughout the day. This fluctuation underscores the dynamic nature of currency markets, where multiple factors influence exchange rates.

Buzzing

NTPC Ltd. exhibited strong market performance as its share price surged by 2.73%, reaching Rs 240.50 from its previous close at Rs 234.10. Notably, the company’s annual revenue growth of 31.84% has outperformed its 3-year CAGR of 16.39%, indicating robust financial health. It’s worth mentioning that, over the last 18 years, only 1.23% of trading sessions witnessed intraday gains exceeding 5%, showcasing the stability of NTPC Ltd.’s stock.

Conversely, UPL Ltd. faced a decline in its share price, dropping by -1.03% from its prior closing price of Rs 612.30, settling at Rs 606.00. A concerning factor is the company’s quarter-over-quarter revenue decline of 45.98%, the lowest recorded in the last 3 years. In the same time frame, 3.02% of trading sessions saw intraday gains higher than 5%, reflecting a more volatile trend for UPL Ltd.

Advance Decline Ratio

Today, the advance-decline ratio was 1.07, and the market breadth was positive. The volatility index India Vix decreased by 0.85 percent to settle at 10.78 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1228
Decliners – 1145
52Wk High –  181
52Wk Low – 5
High Band Hitters – 82
Low Band Hitters – 16
200d SMA – 18408
50d SMA – 19517
20d SMA – 19442

Top Gainers and Losers Stocks

The top gainers were NTPC (+2.73%), Coal India (+2.65%), BPCL (+2.06%), Tata Motors (+1.96%), and Larsen & Toubro (+1.88%).

The top losers were UPL (-1.03%), Eicher Motors (-0.90%), Apollo Hospitals (-0.82%), UltraTech Cement (-0.77%), and SBI Life (-0.75%).

Top Gainers and Losers Sector

The top gainers sectors were Realty (+2.12%), Consumer Durables (+1.38%), Oil & Gas (+1.12%), Financial Services (+0.89%), and Auto (+0.67%).

The top losers sectors were Media (-0.97%), Pharma (-0.36%), FMCG (-0.14%), IT (-0.10%), and Metal (-0.05%).

The Nifty Midcap 50 was up by 1.10 percent, while the Nifty Small Cap 50 was up by 0.91 percent on the day.

The Nifty Midcap 50 index currently closed at 11,647.15, while the Nifty Small Cap 50 index currently closed at 5,913.90.

SECTORS – NOTABLE ACTION
REALTY +2.12%
CONSUMER DURABLES +1.38%
OIL & GAS +1.12%
MEDIA -0.97%
PHARMA -0.36%
FMCG -0.14%

Stocks Ban List

(SEBI) F&O ban list  (IBULHSGFIN open at +190.50 and close at -187.55), (PNB open at +67.00 and close at +66.85), (MANAPPURAM open at -145.40 and close at -144.60), (SAIL open at +100.00 and close at -98.90), (INDIACEM open at -253.00 and close at -248.65), (DELTACORP open at -185.40 and close at +185.10), (HINDCOPPER open at -163.60 and close at +166.95), (BALRAMCHIN open at +417.70 and close at -406.90), and (BHEL open at +138.60 and close at +145.30) 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.

ZEEL, CHAMBLFERT, NMDC, and NATIONALUM stocks has the possibilities of enterance in the ban list.

BHEL stock has the possiblities of exit from ban list.

Daily Pivots

As per the above pivots data, 19730 to 19890 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Breaks 19,650 Hurdle, Banking Pack Strengthens
Index Rebound Hindered by Banking Underperformance
Nifty Gaps Up, Consolidates in Narrow Range
Indian Shares Surge Metals & IT Gain on China Stimulus and Fed Expectations

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