Nifty Soars Over 19,600 in a Remarkable Comeback

At the close, the Nifty 50 was at 19,675.45 up by 1.19%

The NSE Nifty 50 index surged by 1.19% at the opening bell, displaying a strong start and sustained growth throughout the trading session, closing positively above the 19,650 mark. This impressive leap was fuelled by a global market rally propelled by encouraging US inflation data. Indian benchmark indices rebounded from previous losses, concluding the day on a high note, propelled by widespread buying across various sectors.

The market’s bullish commencement, influenced by favorable global cues, laid the foundation for substantial gains. The indices maintained upward momentum, with selective heavyweight stocks attracting increased buying interest, especially in the latter half, propelling the Nifty higher.

This surge, triggered by positive global cues and softer inflation data from the US and UK, indicates optimism about a potential shift in the interest rate cycle, noticeable in the relaxation of bond yields. This shift is expected to draw Foreign Institutional Investments (FIIs) into emerging markets like India, particularly given the country’s ongoing strong earnings season and amplified festive demand. The decline in India’s Consumer Price Index (CPI) also contributed to bolstering market sentiment.

The market’s resurgence was widespread, with key sectors such as Realty, IT, automotive, oil & gas, and metals leading the charge. This broad-based rally underscores an optimistic outlook and robust investor confidence across various segments.

Bank Nifty: Up by 0.71%

The Indian stock market showcased robust performance as both the Bank Nifty and BSE Sensex displayed significant gains during the trading session. The Bank Nifty saw a promising increase of 0.71%, concluding the day at 44,201.70, maintaining its upward trajectory. Meanwhile, the BSE Sensex marked a notable surge of 1.14%, closing at a high point of 65,675.93, highlighting strong performance across key indices.

Within sectors, the realty sector witnessed a substantial surge of 2.95%, with notable companies such as The Phoenix Mills Ltd. and Oberoi Realty Ltd. experiencing commendable upswings of 6.15% and 5.55%, respectively. Simultaneously, the Information Technology (IT) sector emerged as a significant gainer, registering a growth of 2.59%. Leading players like Mphasis Ltd. and Coforge Ltd. showcased impressive upticks of 5.46% and 4.99%, respectively, reflecting the sector’s positive momentum.

Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) displayed a net value of Rs. 550.19 crore, signaling a positive trend with a higher buy value of Rs. 15,620.95 crore compared to the sale value of Rs. 15,070.76 crore. Conversely, Domestic Institutional Investors (DII) recorded a higher net value of Rs. 609.82 crore, with a buy value of Rs. 8,165.17 crore and a sale value of Rs. 7,555.35 crore, showcasing active participation and investment interest within the domestic investor segment.

Bank Nifty

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

The gainers included Axis Bank with a 1.58% increase, Kotak Bank with a 1.32% increase, Bandhan Bank with a 1.21% increase, HDFC Bank with a 1.07% increase, and ICICI Bank with a 0.81% increase. On the other hand, the biggest losers in the sector included Federal Bank with a 1.73% decline, IndusInd Bank with a 0.97% decline, and AU Bank with a 0.49% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Rupee Gains Ground Against Dollar Amidst Lower US CPI Data

The Indian rupee kicked off the day positively, marking an ascent beyond 83.05 against the dollar, reflecting a gain of 0.25rs. This surge was a result of the substantial decline in the dollar index, which experienced a notable drop of more than 1%, sliding from 105.35$ to 104.15$. The trigger for this decline stemmed from the recent release of lower-than-expected US Consumer Price Index (CPI) data, which stood at 3.20% compared to the previous month’s 3.7%. This unexpected decrease suggested a shift in the Federal Reserve’s interest rate hike plans, thereby weakening the dollar against other global currencies, including the rupee.

However, despite the initial gains, profit booking in the rupee prompted a slight retracement. The rupee’s current range is projected to fluctuate between 82.90 and 83.30 amidst these dynamic shifts in the currency market.

In the global oil market, the benchmark Brent crude experienced a decline, dropping by 0.78% to $81.83 a barrel.

Buzzing

Eicher Motors Ltd. displayed an impressive performance in the stock market, marking a 5.34% increase from its previous close of Rs 3,645.40, with the stock trading at 3,840.00. Notably, the company’s annual revenue growth of 40.03% surpassed its 3-year Compound Annual Growth Rate (CAGR) of 15.58%.

In terms of financial management, Eicher Motors Ltd. has effectively managed its expenses, allocating less than 1% of its operating revenues to interest expenses and 6.94% towards employee costs as of March 31, 2023.

Contrastingly, Bajaj Finance Ltd. observed a decline of -1.95% in its share price, trading at 7,216.95 from the previous close of Rs 7,360.85. Despite a commendable annual revenue growth of 30.86%, outperforming its 3-year CAGR of 16.03%, the recent trend signals a bearish sentiment. The appearance of a 5-day moving crossover on November 13, 2023, suggests a potential bearish trend, historically leading to an average price decline of -2.88% within 7 days.

Financially, Bajaj Finance allocated 30.34% of its operating revenues to interest expenses and 12.22% towards employee costs by March 31, 2023. This higher allocation indicates a larger portion of revenues directed towards expenses compared to Eicher Motors, signaling potential financial management challenges for Bajaj Finance in the short term.

Advance Decline Ratio

Today, the advance-decline ratio was 1.62, and the market breadth was positive. The volatility index India Vix decreased by 0.46 percent to settle at 11.14 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1500
Decliners – 928
52Wk High –  196
52Wk Low – 14
High Band Hitters – 145
Low Band Hitters – 46
200d SMA – 18693
50d SMA – 19578
20d SMA – 19337

Top Gainers and Losers Stocks

The top gainers were Eicher Motors (+5.34%), Tech Mahindra (+3.77%), Hindalco (+3.72%), Infosys (+2.80%), and Tata Motors (+2.79%).

The top losers were Bajaj Finance (-1.95%), Power Grid (-1.08%), IndusInd Bank (-0.97%), Dr. Reddy (-0.09%), and Cipla (-0.04%).

Top Gainers and Losers Sector

The top gainers sector were Realty (+2.95%), IT (+2.59%), Auto (+1.73%), Oil & Gas (+1.46%), Metal (+1.17%).

SECTORS – NOTABLE ACTION
REALTY +2.95%
IT +2.59%
AUTO +1.73%

Stocks Ban List

(SEBI) F&O ban list (HINDCOPPER open at +164.00 and close at -160.25), (IBULHSGFIN open at +180.40 and close at +180.30), (SAIL open at +89.45 and close at +88.40), (ZEEL open at +254.40 and close at -248.20), (MANAPPURAM open at +153.50 and close at +150.50), (DELTACORP open at +142.00 and close at +141.20), and (CHAMBLFERT open at -303.40 and close at +304.75) 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, BIOCON, BHEL, TATACHEM, BALRAMCHIN, HINDPETRO, NMDC, and PNB stocks has the possibilities of enterance in the ban list.

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

Daily Pivots

As per the above pivots data, 19590 to 19740 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Diwali Festivities and Mutual Fund Investments Boost Market Sentiment
Nifty Faces Resistance at 19,500 Amid Global Uncertainties
Market Stays Rangebound Despite Mixed Global Trends

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