Nifty Soars to New High! Banking Stocks Lead the Charge

At the close, the Nifty 50 was at 23,721.30 up by 0.78%

On June 25, the NSE Nifty 50 exhibited remarkable resilience, starting in the green and closing with a notable 0.78% gain, surpassing the 23,700 mark to reach a new all-time high of 23,754.15. This bullish momentum was largely driven by the banking sector, as bulls dominated Dalal Street, fueled by optimism surrounding private banks. The presence of a bullish candle on daily charts and higher bottom formations on intraday charts signal the continuation of the uptrend in the near future.

Financial Sector Leads Rally, Nifty Bank Hits New High
The financial sector spearheaded today’s rally, with private banks leading the charge, propelling the Nifty Bank to unprecedented levels. Following a robust recovery from lower support levels around 23,500 on Monday, Nifty witnessed a significant upswing on Tuesday, closing the day higher by 183 points. The surge in market indices coincided with the release of RBI data indicating a current account surplus of $5.7 billion in the fourth quarter of the fiscal year 2023-24.

Market Optimism Amidst Budget Expectations
Benchmark indices Sensex and Nifty surged to record highs on June 25, driven by optimistic sentiments surrounding the upcoming budget and favorable global cues. While the market experienced profit booking in sectors like realty, power, metals, and midcaps, the financial sector remained buoyant, with the Nifty Bank reaching unprecedented levels and the Sensex surpassing 78,000. Selective buying in heavyweight stocks, particularly from the banking sector, fueled a sharp surge as the trading session progressed.

Anticipation Surrounding Budget and Monsoon Progress
As the market continues its upward trajectory amidst moderate consolidations and sector rotations, investors closely monitor developments related to the upcoming budget and the progress of the monsoon. Expectations from the budget and insights into consumption outlooks are key factors influencing market dynamics, driving optimism despite global volatility.

Bank Nifty: Up by 1.74%

The Bank Nifty commenced trading on a positive note, opening in the green with a notable gain of 1.74%. This upward momentum persisted throughout the trading session, leading to a closing figure of 52,606.00, marking a substantial increase. Similarly, the BSE Sensex experienced a significant uptick, rising by 0.92% and closing at a high of 78,053.52.

In the sectorial landscape, Financial Services emerged as the top gainer, experiencing a notable uptick of 1.90%. Within this sector, LIC Housing Finance Ltd. showcased a significant gain of 4.92%, followed closely by Shriram Finance Ltd. with a commendable increase of 3.95%.

On the flip side, Realty emerged as the top loser, witnessing a decline of 1.75%. Within this sector, Macrotech Developers Ltd. registered a notable loss of -4.65%, while Oberoi Realty Ltd. followed closely with a decrease of -4.08%.

Foreign Institutional Investors (FII/FPI) displayed robust activity in the Indian stock market, with a buy value of Rs. 17,331.84 crore and a sale value of Rs. 16,155.93 crore, resulting in a net value of Rs. 1,175.91 crore.

Conversely, Domestic Institutional Investors (DII) witnessed a marginal net outflow, with a buy value of Rs. 13,519.21 crore and a sale value of Rs. 13,668.66 crore, leading to a net value of -Rs. 149.45 crore.

Bank Nifty

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

The gainers included Axis Bank with a 3.63% increase, ICICI Bank with a 2.90% increase, HDFC Bank with a 2.07% increase, State Bank of India with a 1.11% increase, and Kotak Bank with a 0.54% increase.

On the other hand, the biggest losers in the sector included Bandhan Bank with a 2.09% decline, Punjab National Bank with a 0.86% decline, Bank of Baroda with a 0.36% decline, and IDFC First Bank with a 0.07% decline. These results suggest that some of the banking stocks performed better for the day.

Gold and Silver

Today 22 Carat Gold Price Per Gram in India (INR)

Today 24 Carat Gold Price Per Gram in India (INR)

Today Silver Price 1 Gram/KG in India (INR)

Rupee Edges Up on Domestic Market Strength, Oil Prices Remain Stable

The rupee appreciated by 3 paise against the US dollar on Tuesday, supported by a robust trend in domestic equities and stable global crude oil prices. The local currency opened at 83.46 at the interbank foreign exchange market and fluctuated between an intraday high of 83.41 and a low of 83.48 during the trading session. Ultimately, the rupee settled at 83.44, marking a modest gain from its previous close of 83.47.

The rupee’s slight appreciation was influenced by a favorable performance in domestic stock markets, which provided a buoyant backdrop for the local currency. Despite these supportive factors, the rupee’s advance was tempered by the strength of the US dollar in international markets. The dollar index, reflecting the greenback’s performance against six major currencies, was up 0.03% at 105.50, exerting downward pressure on the rupee.

Meanwhile, Brent crude futures, the benchmark for global oil prices, were down 0.48% at $85.60 per barrel. This decline in crude prices helped mitigate inflationary pressures, supporting the rupee. However, potential increases in crude oil prices and geopolitical uncertainties could limit further appreciation of the Indian currency.

In summary, while positive domestic equity trends and a relatively soft US dollar provide some upside for the rupee, external factors such as crude oil price movements and global political tensions could pose challenges ahead.

Stocks Highlights

Shriram Finance Ltd. saw a commendable uptick in its share price, marking a 3.95% increase from its previous close, settling at Rs 2,996.00. Notably, only a small fraction, approximately 3.4%, of trading sessions over the past 19 years witnessed intraday gains surpassing 5%.

A significant portion of the company’s operating revenues, around 42.67%, went towards interest expenses, with an additional 9.54% allocated for employee costs in the fiscal year ending on March 31, 2024.

Investors may find encouragement in recent market signals, particularly the Weekly MACD crossover detected by analysts, signaling a potential buy opportunity. Historical data reveals an average price gain of 8.46% within seven weeks of such signals over the past decade.

Comparing stock returns to the Nifty 100 index, Shriram Finance Ltd. has demonstrated impressive performance, boasting a 3-year return of 100.57% versus the Nifty 100’s 52.57% return.

Conversely, Bharat Petroleum Corporation Ltd. observed a downturn in its share price, decreasing by -2.78% from its previous close of Rs 305.25 to Rs 296.75. In the past 19 years, only 1.81% of trading sessions witnessed intraday declines exceeding 5%.

Despite this decline, the company showcased a robust Return on Equity (ROE) of 35.51% for the fiscal year ending March 31, 2024, surpassing its 5-year average of 22.09%. However, concerning financial metrics include a 5.13% contraction in sales, marking the company’s first revenue decline in the past three years. Moreover, a sell signal emerged as the 50-day moving average crossover occurred, historically resulting in an average price decline of -3.73% within 30 days of this signal over the last five years.

Advance Decline Ratio

Today, the advance-decline ratio was 0.78, and the market breadth was negative. The volatility index India Vix increased by 1.81 to settle at 14.31 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1147
Decliners – 1474
52Wk High – 181
52Wk Low – 8
High Band Hitters – 143
Low Band Hitters – 46
200d SMA – 21357
50d SMA – 22707
20d SMA – 23130

Top Gainers and Losers Stocks

The top gainers were Shriram Finance (+3.95%), Axis Bank (+3.63%), ICICI Bank (+2.90%), HDFC Bank (+2.07%), and Tech Mahindra (+1.77%).

The top losers were BPCL (-2.78%), Eicher Motors (-1.76%), Power Grid (-1.71%), Asian Paint (-1.21%), and Tata Steel (-1.18%).

Top Gainers and Losers Sectors

The top gainers sector were Financial Services (+1.90%), IT (+0.81%), and Pharma (+0.06%).

The top losers sector were Realty (-1.75%), Metal (-0.70%), Media (-0.50%), Oil & Gas (-0.45%), and FMCG (-0.26%).

SECTORS – NOTABLE ACTION
FINANCIAL SERVICES +1.90%
IT +0.81%
PHARMA +0.06%
REALTY -1.75%
METAL -0.70%
MEDIA -0.50%

Stocks Ban List

(SEBI) F&O ban list (INDUSTOWER open at +342.95 and close at +344.20), (GNFC open at +702.00 and close at -694.65), (SAIL open at -150.80 and close at -147.01), (PNB open at -125.10 and close at -124.13), (CHAMBLFERT open at +515.50 and close at -506.70), (PEL open at -876.00 and close at +880.40), (GRANULES open at -490.95 and close at +487.80) and (BALRAMCHIN open at +445.45 and close at -440.70) 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, GMRINFRA, IRCTC, IEX, ABCAPITAL, IDEA, LICHSGFIN, ABFRL, TATACHEM, RBLBANK, BSOFT, and METROPOLIS stocks has the possibilities of entrance in the ban list.

PEL, GRANULES, and BALRAMCHIN stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 23550 to 23850 is the Nifty 50 trading range.

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