Nifty Stays Strong Despite Global Turmoil—Will the Bulls Keep Charging Forward?

At the close, the Nifty 50 was at 24,811.50 up by 0.17%

Today August 22, the NSE Nifty 50 started the day on a positive note, inching up by 0.17% and closing above the 24,800 mark. Despite a rangebound session, Nifty managed to gain 41.30 points, ending the day at 24,811.50. The broader market showed mixed results: while midcaps outperformed, smallcaps moved in sync with the main index.

This marks the third straight session of gains for Indian markets, fueled by strong buying across various sectors, except IT and power. Even as Nifty approached the resistance zone of 24,850-24,960—where a bearish gap from August 2 looms—the market showed impressive resilience. But, the hourly momentum indicator has flashed a negative crossover and divergence, hinting at potential pressure ahead.

Global cues are keeping investors on edge as they await key US data, including unemployment claims, home sales, and PMI, which could offer hints on the timing of a potential rate cut. The India VIX, often dubbed the “fear gauge,” fell for the sixth consecutive session, dropping by 2.49% to 13. This drop signals lower volatility and brings some relief to bullish investors.

In the broader context, domestic gains are buoyed by positive global sentiment. Recent weakness in US non-farm payroll data has raised hopes for a rate cut in September. Yet, caution remains as investors wait for more definitive signals from central banks in Japan and the US.

With the Nifty holding its ground near a crucial resistance level, the suspense builds: Will the bulls break through, or is a temporary pause on the horizon? Should you dive in now or hold back and wait for clearer signals?

Bank Nifty: Up by 0.59%

The Bank Nifty maintained its upward drive from the latter half of the last session, opening strong and closing 0.59% higher at 50,985.70. Staying above key moving averages and showing a positive crossover in daily momentum suggests a short-term buying opportunity for traders, hinting at more bullish action ahead.

Similarly, the BSE Sensex followed suit, inching up by 0.18% to hit a new high of 81,053.19. The synchronized lift across both indices reflects broader market optimism that could fuel further gains in upcoming sessions.

In the sectorial front, the Consumer Durables sector takes center stage with a notable gain of 0.86%. Among the top performers within this sector, Kalyan Jewellers India Ltd. shone brightly with an impressive 10.71% surge, followed by Century Plyboards (India) Ltd., which posted a steady 3.20% rise.

On the other side of the spectrum, the Oil & Gas sector finds itself in a tough spot, recording a slight dip of 0.23%. Notably, Mahanagar Gas Ltd. saw a decline of 2.34%, while Indraprastha Gas Ltd. followed closely with a loss of 1.78%.

Foreign Institutional Investors (FIIs) collectively recorded a buy value of Rs. 18,462.95 crore, against a sale value of Rs. 17,091.16 crore. This results in a net purchase of Rs. 1,371.79 crore, reflecting a bullish sentiment among international investors.

On the domestic front, Domestic Institutional Investors (DIIs) also displayed strong buying behavior. DIIs accumulated shares worth Rs. 12,239.70 crore while selling Rs. 9,267.90 crore, resulting in a net buying value of Rs. 2,971.80 crore.

Bank Nifty

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

The gainers included IDFC First Bank with a 2.31% increase, ICICI Bank with a 1.36% increase, AU Bank with a 1.28% increase, Bandhan Bank with a 1.09% increase, and Punjab National Bank with a 0.91% increase.

On the other hand, the biggest losers in the sector included Axis Bank with a 0.37% decline, IndusInd Bank with a 0.22% decline, and Federal Bank with a 0.07% decline. The day’s results hint at a remarkable performance boost across banking shares.

Gold and Silver Rate (INR) 22nd August, 2024

Stocks Highlights

Grasim Industries saw its share price rise by 2.65%, moving from Rs 2,684.85 to a last traded price of Rs 2,756.00. This movement indicates bullish momentum, supported by a 20-day moving average crossover, a strong buy signal that has historically led to an average gain of 3.44% within seven days over the last five years. Intriguingly, in the last 19 years, only 1.0% of trading sessions have seen Grasim register intraday gains exceeding 5%, showcasing the rarity of such sharp spikes.

Despite this recent uptick, the company’s quarterly performance isn’t all rosy. Grasim experienced a QoQ revenue decline of 10.47%—its worst in three years. However, when it comes to long-term returns, Grasim shines with an 80.84% return over three years, significantly outperforming the Nifty 100’s 55.35% return.

In contrast, Wipro Ltd. has been on a downward trajectory, with its share price slipping by 1.37%, from Rs 526.35 to Rs 519.15. Over the last 19 years, only 1.33% of its trading sessions witnessed intraday gains exceeding 5%, indicating that such strong upward moves are infrequent.

The company’s sales also saw a minor contraction of 0.39%, marking the first revenue drop in three years. Even more concerning is Wipro’s three-year stock performance, with returns of -15.11%, a stark contrast to the Nifty 100’s positive 55.35%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.61, and the market breadth was positive. The volatility index India Vix decreased by 2.49 to settle at 13.00 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1672
Decliners – 1039
52Wk High – 195
52Wk Low – 5
High Band Hitters – 173
Low Band Hitters – 47
200d SMA – 22316
50d SMA – 24245
20d SMA – 24523

Top Gainers and Losers Stocks

The top gainers were Grasim (+2.65%), Tata Consumer (+2.42%), Bharti Airtel (+1.60%), Apollo Hospitals (+1.37%), and Tata Steel (+1.37%).

The top losers were Wipro (-1.37%), NTPC (-1.25%), Tata Motors (-1.22%), M&M (-1.21%), and Dr. Reddy (-1.17%).

Top Gainers and Losers Sectors

The top gainers sector were Consumer Durables (+0.86%), Metal (+0.67%), FMCG (+0.62%), Realty (+0.47%), and Financial Services (+0.45%).

The top losers sector were Oil & Gas (-0.23%), Media (-0.19%), IT (-0.16%), Pharma (-0.14%), and Auto (-0.09%).

SECTORS – NOTABLE ACTION
CONSUMER DURABLES +0.86%
METAL +0.67%
FMCG +0.62%
OIL & GAS -0.23%
MEDIA -0.19%
IT -0.16%

Stocks Ban List

(SEBI) F&O ban list (INDIACEM close at +369.10), (BSOFT open at close at -601.65), (AARTIIND close at +625.20), (NATIONALUM close at +171.35), (HINDCOPPER close at +318.55), (ABFRL close at -314.30), (GNFC close at +669.25), (SUNTV close at -790.10), (LICHSGFIN close at +682.35), (PEL close at +1037.45), (GRANULES close at -685.20), and (BALRAMCHIN close at +579.15) 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.

IDFCFIRSTB, PNB, EXIDEIND, IEX, CHAMBLFERT, NMDC, CONCOR, LTF, ABCAPITAL, BIOCON, BATAINDIA, and SBICARD stocks has the possibilities of entrance in the ban list.

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

Daily Pivots

As per the above pivots data, 24600 to 24950 is the Nifty 50 trading range.

Read Previous -Daily Insights- here
Global Surge Lifts Nifty—Is This the Breakthrough Investors Have Been Waiting For?
Will the Eased US Recession Fears Propel the Nifty to New Heights?

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