Nifty Opens Positively, Maintains Rangebound Upward Trend

At the close, the Nifty 50 was at 18,856.85 up by 0.21%

The positive domestic fundamentals are solely responsible for the recent surge in the markets, leading to a new all-time high and propelling the Nifty index towards surpassing its previous peak. Despite global macro headwinds, both domestic and foreign investors are optimistic about investing in local shares due to improving growth parameters, indicating a strong belief in the potential of the domestic market and highlighting confidence in the positive trajectory of the economy.

Today, the NSE Nifty 50 index began on a strong note, opening at a higher level and maintaining its positive momentum throughout the trading session, ultimately displaying a gain of 0.21 percent. As the day progressed, the index continued to perform well and concluded on a positive note, closing in the green. It is noteworthy that the Nifty managed to stay above the crucial level of 18850, indicating a promising outlook for investors.

The Nifty’s impressive performance is a testament to the resilience of the Indian stock market, which has weathered numerous challenges in recent times. Global uncertainties and a delayed monsoon have caused uncertainty, hindering the domestic market’s ability to sustain its upward trend despite achieving new record levels.

Among the sectors, Financial Services emerged as the top gainer, recording a gain of 0.68%. Noteworthy performers in this sector include SHRIRAM FINANCE LIMITED, which witnessed a significant gain of 11.31%, MUTHOOT FINANCE LIMITED with a gain of 3.54%, and REC LIMITED with a gain of 2.63%. On the other hand, the Metal sector experienced a decline of 0.94%, making it the top loser. Within this sector, JSW STEEL LIMITED faced a loss of -1.93%, and JINDAL STEEL & POWER LIMITED experienced a loss of -1.78%.

Bank Nifty: Up by 0.21%

The Bank Nifty displayed a positive trajectory as it commenced the trading session in the green zone, exhibiting a gain of 0.21 percent and ultimately closing at 43,859.20 while maintaining its upward momentum. Similarly, the BSE Sensex demonstrated a comparable pattern, with a rise of 0.31 percent, culminating at a noteworthy high of 63,523.15, and concluding the day in the green.

The market’s volatility rose due to consecutive days of net selling by Foreign Institutional Investors (FIIs), but mid-cap stocks showed steady gains. In the global market, news of UK CPI inflation surpassing expectations dampened investor sentiment and negatively affected overall confidence.

On the global front, news of UK CPI inflation surpassing expectations had a significant impact on investor sentiment. This development had a negative effect on overall investor confidence, which was reflected in the market’s performance.

Bank Nifty

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

The gainers included Punjab National Bank with a 1.93% increase, HDFC Bank with a 1.77% increase, Bank of Baroda with a 1.67% increase, and Federal Bank with a 0.08% increase. On the other hand, the biggest losers in the sector included AU Bank with a 2.24% decline, Bandhan Bank with a 2.15% decline, IndusInd Bank with a 0.96% decline, Axis Bank with a 0.92% decline, and IDFC First Bank with a 0.72% decline. These results suggest that some banking stocks not performed better for the day.

Buzzing

The share price of Power Grid Corporation of India Ltd. witnessed an upward movement of 3.78% from its previous close of Rs 248.75, reaching a last traded price of Rs 258.15. Notably, the stock delivered an impressive 3-year return of 93.5%, outperforming the Nifty 100 index, which recorded a return of 79.99%. Furthermore, a 5-day moving crossover signal emerged yesterday, indicating a potential bullish trend. Historical data reveals an average price gain of 2.39% within 7 days after this signal over the past 5 years. In addition, the company experienced a substantial quarter-on-quarter revenue growth of 8.91%, marking its highest growth rate in the last 3 years.

The share price of JSW Steel Ltd. witnessed a decline of -1.93% from its previous close of Rs 773.15, settling at a last traded price of Rs 758.25. Notably, the stock delivered an impressive 3-year return of 297.92%, outperforming the Nifty Metal index, which recorded a return of 210.56% over the same period. Furthermore, in comparison to the Nifty 100 index’s return of 79.99%, JSW Steel Ltd. exhibited a substantial 3-year return of 297.92%. It is worth noting that only 3.58% of trading sessions in the last 18 years witnessed intraday gains higher than 5%.

Buzz

The Reserve Bank of India and the Federal Reserve have both decided to keep their policy rates unchanged due to similar inflation trends in the US and India. Despite reduced Saudi Arabian oil production, concerns over crude prices in 2023 have not been eased. However, this has resulted in a sustained period of low inflation in India, leading to a positive economic outlook.

The decision-making process of the RBI and the Fed has been prudent as they have maintained stability in the financial markets by keeping policy rates steady. This is crucial in the current global economic climate, which is uncertain and volatile.

The Indian rupee has shown impressive strength compared to other Asian currencies, thanks to a consistent flow of dollars into the domestic stock market. This has boosted the rupee’s resilience and value, proving the durability of the Indian economy and investors’ confidence in its potential for growth. Despite challenging economic circumstances, the rupee has held its ground. It will be intriguing to observe how the rupee fares amidst ongoing economic challenges. Nevertheless, with consistent dollar inflows and a robust domestic market, the Indian rupee is expected to exhibit strength and resilience in the future.

At present, the Indian rupee is undergoing a phase of limited fluctuations, with trade taking place in a narrow band of 81.80-82.30. As long as this range remains intact, the currency is directionless and predicted to remain within the set limits. It is crucial to keep an eye out for any market changes that could cause the rupee to break free from this range and modify investment plans accordingly.

Advance Decline Ratio

Today, the advance-decline ratio was 0.88, and the market breadth was negative. The volatility index India Vix increased by 1.43 percent to settle at 11.29 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1083
Decliners – 1231
52Wk High –  156
52Wk Low – 13
High Band Hitters – 61
Low Band Hitters – 46
200d SMA – 17918
50d SMA – 18276
20d SMA – 18637

Top Gainers and Losers Stocks

The top gainers were Power Grid (+3.78%), ONGC (+2.00%), Adani Ports (+1.94%), HDFC Bank (+1.77%), and HDFC (+1.67%).

The top losers were JSW Steel (-1.93%), Hindalco (-1.74%), Divi’s Laboratories (-1.44%), M&M (-1.43%), and ITC (-1.05%).

Top Gainers and Losers Sector

The top gainers sectors were Financial Services (+0.68%), Media (+0.55%), Oil & Gas (+0.42%), IT (+0.33%), and Consumer Durables (+0.14%).

The top losers sectors were Metal (-0.94%), FMCG (-0.44%), Realty (-0.33%), and Auto (-0.05%).

The Nifty Midcap 50 was up by 0.75 percent, while the Nifty Small Cap 50 was down by 0.39 percent on the day.

The Nifty Midcap 50 index currently closed at 10,032.40, while the Nifty Small Cap 50 index currently closed at 4,843.95.

SECTORS – NOTABLE ACTION
FINANCIAL SERVICES +0.68%
MEDIA+0.55%
OIL & GAS +0.42%
METAL -0.94%
FMCG -0.44%
REALTY -0.33%

Stocks Ban List

(SEBI) F&O ban list  (HINDCOPPER open at +117.55 and close at -115.80), (L&TFH open at +122.10 and close at +123.65), (BHEL open at +88.40 and close at -86.90), (HAL open at -3879.30 and close at -3820.35) (DELTACORP open at -245.25 and close at -243.05), (INDIACEM open at -222.85 and close at +231.50), and (IBULHSGFIN open at +114.60 and close at +117.15) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned HINDCOPPER, L&TFH, BHEL, HAL, DELTACORP, INDIACEM, and IBULHSGFIN from trading in the futures and options (F&O) segment of 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.
PNB, BALRAMCHIN, HDFCAMC, RBLBANK, IDFC, DIXON, IEX, RAIN, and GNFC Face Possible Entry in Ban List.

DELTACORP, INDIACEM, and IBULHSGFIN has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 18800 to 18900 is the Nifty 50 trading range.

Read previous -Daily Insights- here
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WPI Negative for Second Consecutive Month on Falling Fuel and Goods Prices

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