Nifty Soars in 5th Straight Session, Sets New All-Time High

At the close, the Nifty 50 was at 22,122.25 up by 0.37%

Today, the NSE Nifty 50 index demonstrated resilience, opening in the green and closing with a gain of 0.37%. Surpassing the 22,100 mark, the market showcased its upward trajectory, reaching a new all-time intraday high of 22,186.65. Despite initial fluctuations driven by mixed global cues, consistent buying in various sectoral indices and heavyweight stocks propelled the market to close near its daily highs.

The day saw Nifty opening with a gap up and maintaining a positive bias throughout the first half of trading. However, uncertainty prevailed, as reflected by long shadows on both ends of today’s candlestick chart, indicating indecision among investors regarding the market’s direction. Nifty currently stands at a crucial juncture, with potential volatility as both Bulls and Bears defend their boundaries.

Moreover, positive signals abound, with Nifty surpassing swing highs on the hourly chart and witnessing an upside breakout after a period of consolidation. The momentum indicator RSI also indicates a favorable shift in momentum. However, amidst these optimistic developments, it’s essential to note the cautious stance of foreign investors due to higher US 10-year yields and recent outflows of Foreign Institutional Investors (FIIs). This cautious sentiment is reinforced by the anticipation surrounding the US Federal Reserve’s minutes release, expected to provide insights into future rate directions.

Despite the current risk-reward dynamics, the broader market continues to outperform, fueled by expectations of private capital expenditure improvements and optimism regarding political stability. Factors such as benign input costs and the anticipation of a rural demand uptick are expected to bolster corporate earnings growth. However, the market remains sensitive to global economic cues, particularly those emanating from the US Federal Reserve’s policy decisions and investor sentiments.

Bank Nifty: Up by 0.32%

Today, the Bank Nifty commenced trading on a positive note, marking a modest increase of 0.32% and closing at 46,535.50. Despite this upward movement, there are indications of a fading momentum in the market. Negative crossovers and negative divergences observed on the hourly charts signal a potential loss of momentum in the upward trajectory of the Bank Nifty.

Similarly, the BSE Sensex mirrored this trend, recording a gain of 0.39% and closing at a notable high of 72,708.16. While the Sensex demonstrated resilience and maintained its upward momentum, it’s essential to note the cautious market sentiment reflected in the slowing momentum observed in the Bank Nifty.

In the sectorial front, the Consumer Durables sector has seen a notable surge, marking a 1.87% increase. Notably, Rajesh Exports Ltd. has witnessed an impressive gain of 13.20%, while Dixon Technologies (India) Ltd. follows suit with a commendable increase of 6.74%. Conversely, the Realty sector has encountered a downturn, experiencing a decrease of 0.67%. This decline raises concerns among investors, particularly regarding the performance of companies within this sector. Prestige Estates Projects Ltd. recorded a notable loss of -3.58%, with Sobha Ltd. trailing behind with a decrease of -2.56%.

Foreign Institutional Investors (FII/FPI) exhibited a net selling behavior, with a sale value surpassing the buy value, resulting in a net value of -754.59 Rs. Cr. Specifically, FII/FPI buy value amounted to 10,167.95 Rs. Cr., whereas the sale value stood higher at 10,922.54 Rs. Cr. Conversely, Domestic Institutional Investors (DII) displayed a net buying trend, with a net value of 452.70 Rs. Cr. DII buy value totaled 8,081.14 Rs. Cr., while the sale value amounted to 7,628.44 Rs. Cr.

Bank Nifty

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

The gainers included AU Bank with a 3.32% increase, ICICI Bank with a 1.74% increase, Bandhan Bank with a 1.62% increase, and State Bank of India with a 0.66% increase. On the other hand, the biggest losers in the sector included Bank of Baroda with a 1.56% decline, Punjab National Bank with a 1.19% decline, Federal Bank with a 0.94% decline, IDFC First Bank with a 0.78% decline, and IndusInd Bank with a 0.58% decline. These results suggest that some of the banking stocks not performed better for the day.

Stocks Highlights

Grasim Industries Ltd. Demonstrates Strong Performance

Grasim Industries Ltd. has shown notable growth, with its share price increasing by 3.09% to reach Rs 2,170.65, surpassing its previous close of Rs 2,105.65. This positive movement reflects investor confidence in the company’s performance.

The company’s annual revenue growth of 25.61% has outpaced its 3-year Compound Annual Growth Rate (CAGR) of 16.61%, indicating robust financial performance and effective business strategies. Additionally, Grasim Industries Ltd. has allocated 5.14% of its operating revenues towards interest expenses and 6.12% towards employee costs, demonstrating prudent financial management.

Coal India Ltd. Faces Price Decline Amid Dividend Announcement

Conversely, Coal India Ltd. witnessed a decline in its share price by -4.24% to Rs 459.65 from its previous close of Rs 480.00. Despite this, the company has shown strong revenue growth, with an annual increase of 27.45%, surpassing its 3-year CAGR of 12.19%.

Furthermore, Coal India Ltd. announced a dividend of Rs 5.25 per share on 30 Jan, 2024, with a record date of 20 Feb, 2024. While this dividend announcement may be appealing to investors seeking income, the decline in share price raises concerns about market sentiment towards the company.

Advance Decline Ratio

Today, the advance-decline ratio was 1.52, and the market breadth was positive. The volatility index India Vix increased by 5.22 percent to settle at 16.02 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1542
Decliners – 1013
52Wk High –  194
52Wk Low – 5
High Band Hitters – 192
Low Band Hitters – 56
200d SMA – 19887
50d SMA – 21591
20d SMA – 21728

Top Gainers and Losers Stocks

The top gainers were Grasim (+3.09%), Bajaj Finserv (+2.71%), Bajaj Auto (+2.27%), Cipla (+2.13%), and Bharti Airtel (+1.91%).

The top losers were Coal India (-4.24%), Larsen & Toubro (-1.35%), SBI Life (-1.30%), Wipro (-1.29%), and HDFC Life (-1.16%).

Top Gainers and Losers Sector

The top gainers sector were Consumer Durables (+1.87%), Pharma (+0.88%), FMCG (+0.79%), Oil & Gas (+0.55%), and Media (+0.41%).

The top losers sector were Realty (-0.67%), and IT (-0.30%).

SECTORS – NOTABLE ACTION
CONSUMER DURABLES +1.87%
PHARMA +0.88%
FMCG +0.79%
REALTY -0.67%
IT -0.30%

Stocks Ban List

(SEBI) F&O ban list (NATIONALUM open at +164.00 and close at -160.60), (INDUSTOWER open at +222.05 and close at +223.20), (CANBK open at -587.30 and close at -572.85), (ZEEL open at -184.00 and close at -178.50), (HINDCOPPER open at +258.65 and close at -255.05), (BANDHANBNK open at +204.50 and close at +203.75), (INDIACEM open at +243.15 and close at -241.30), (ABFRL open at -230.95 and close at +235.45), (DELTACORP open at +140.65 and close at +145.85), (BALRAMCHIN open at +382.50 and close at +384.35), (SAIL open at +128.60 and close at +128.30), and (ASHOKLEY open at -174.35 and close at -172.20) 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.

GNFC, VEDL, GMRINFRA, RBLBANK, PVRINOX, PEL, AUROPHARMA, TATACHEM, PNB, NMDC, BHEL, GLENMARK, and UPL stocks has the possibilities of entrance in the ban list.

ABFRL, DELTACORP, BALRAMCHIN, SAIL, and ASHOKLEY stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 22000 to 22250 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Stock Market Soars 4th Consecutive Day of Gains with Nifty Above 22,000
Nifty 50 Extends Winning Streak Amidst Volatility
Gains in SBI and PSU Banks Propel Market to Close Higher in Volatile Session

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