Nifty Surges Past 18,700 on Strong Global Markets and Positive Domestic Data

At the close, the Nifty 50 was at 18,716.15 up by 0.62%

Today, the NSE Nifty 50 opened on a positive note, exhibiting a strong upward momentum, and experienced a significant surge of 0.62 percent throughout the trading session. Eventually, the market concluded on a positive note, with the Nifty closing in the green zone. Notably, the Nifty index successfully surpassed the crucial 18700 mark, indicating a favorable market sentiment.

In the last hours of trading, the markets experienced an impressive surge, driven by positive investor attitudes towards real estate, media, and consumer goods stocks. This boost pushed the Nifty index past the important 18700 mark. The rise was influenced by factors such as lower inflation, strong growth in Industrial Production (IIP) figures, and the expectation that the US Federal Reserve would keep interest rates steady in the upcoming FOMC meeting, all of which lifted market sentiment.

Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs) recorded a total buy value of Rs. 12,967.79 crore, while their sale value stood at Rs. 11,290.19 crore, resulting in a net value of Rs. 1,677.60 crore. Conversely, Domestic Institutional Investors (DIIs) reported a buy value of Rs. 6,753.95 crore and a sale value of Rs. 6,957.27 crore on the same date, leading to a net value of -Rs. 203.32 crore.

Bank Nifty: Up by 0.31%

The latest data on India’s Consumer Price Index (CPI) shows a decrease in food inflation and a favorable base effect, bringing it closer to the Reserve Bank of India’s target. This increases the likelihood of a rate cut by year-end. The focus now shifts to US inflation data and the FOMC announcement, which will impact the global economy. It is crucial to maintain the positive momentum and stay informed to make informed decisions.

The Bank Nifty commenced the trading session on a positive note, recording a gain of 0.31 percent and ultimately concluding in the green at 44,079.85. Similarly, the BSE Sensex exhibited a favorable performance, with a rise of 0.67 percent, reaching a significant high of 63,143.16, before closing in the green.

Bank Nifty

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

The gainers included IDFC First Bank with a 2.82% increase, Bandhan Bank with a 1.54% increase, Axis Bank with a 1.31% increase, Punjab National Bank with a 0.87% increase, and ICICI Bank with a 0.83% increase. On the other hand, the biggest losers in the sector included Kotak Bank with a 1.23% decline, State Bank of India with a 0.40% decline, and Federal Bank with a 0.36% decline. These results suggest that some banking stocks performed better for the day.

Buzz

The Indian rupee exhibited remarkable strength in international markets, benefiting from a weaker US dollar and supported by robust macroeconomic indicators. On Tuesday, the rupee gained 5 paise to conclude at 82.38 (provisional) against the US dollar, which bolstered investor confidence and contributed to an overall positive market sentiment. This impressive performance highlights the resilience of the Indian economy and its ability to weather global economic challenges.

The interbank foreign exchange market saw the local currency open at 82.42 against the US dollar, with eventual settling at 82.38 (provisional), indicating a gain of 5 paise from its previous closing value. This development is significant for those who closely monitor currency exchange rates. It is crucial for businesses and investors to stay informed about such fluctuations as they can have significant impacts on international trade and investment. 

Buzzing

Tata Consumer Products Ltd. observed a significant increase in its share price, rising by 2.34% from its previous closing value of Rs 800.75. The stock’s latest traded price stands at Rs 819.50. Remarkably, the stock delivered an impressive 3-year return of 115.84%, surpassing the Nifty 100’s return of 82.14%. Additionally, a daily Moving Average Convergence Divergence (MACD) crossover occurred yesterday. Over the past 10 years, this signal has been accompanied by an average price decline of -3.49% within a 10-day period. Furthermore, over the course of 18 years, only 1.71% of trading sessions witnessed intraday declines exceeding 5%.

Kotak Mahindra Bank Ltd. experienced a decline in its share price, decreasing by -1.23% from its previous closing value of Rs 1,879.45. The stock’s most recent traded price stands at Rs 1,856.35. Over a 3-year period, the stock delivered a return of 46.85%, which falls short of the Nifty 100’s return of 82.14%. The company demonstrated robust annual revenue growth of 15.81%, outperforming its 3-year Compound Annual Growth Rate (CAGR) of 10.62%. Additionally, Kotak Mahindra Bank Ltd. reported a Year-on-Year (YoY) increase of 17.94% in advances, surpassing its 5-year CAGR of 8.08%. Furthermore, in the last 18 years, only 2.47% of trading sessions observed intraday gains exceeding 5%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.49, and the market breadth was positive. The volatility index India Vix decreased by 1.20 percent to settle at 11.11 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1394
Decliners – 936
52Wk High –  141
52Wk Low – 15
High Band Hitters – 77
Low Band Hitters – 50
200d SMA – 17881
50d SMA – 18115
20d SMA – 18475

Top Gainers and Losers Stocks

The top gainers were Tata Consumer (+2.34%), Cipla (+2.31%), ITC (+2.05%), Titan (+1.96%), and Asian Paint (+1.92%).

The top losers were Kotak Bank (-1.23%), Adani Enterprises (-0.84%), Adani Ports (-0.78%), HCL Technologies (-0.74%), and M&M (-0.52%).

Top Gainers and Losers Sector

The top gainers sectors were Realty (+3.01%), Media (+1.78%), Consumer Durables (+1.44%), FMCG (+1.38%), and Pharma (+1.07%).

The top losers sectors were Auto (-0.11%).

The Nifty Midcap 50 was up by 1.24 percent, while the Nifty Small Cap 50 was up by 0.04 percent on the day.

The Nifty Midcap 50 index currently closed at 9,795.50, while the Nifty Small Cap 50 index currently closed at 4,795.75.

SECTORS – NOTABLE ACTION
REALTY +3.01%
MEDIA +1.78%
CONSUMER DURABLES +1.44%
AUTO -0.11%

Stocks Ban List

(SEBI) F&O ban list  (DELTACORP open at +250.50 and close at -247.60), (INDIACEM open at +230.95 and close at -228.15), (IEX open at -123.80 and close at +125.15), and (IBULHSGFIN open at -109.95 and close at +114.40) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned DELTACORP, INDIACEM, IEX, 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.
BHEL, MANAPPURAM, HAL, ZEEL, HINDCOPPER, and RBLBANK Face Possible Entry in Ban List.

Daily Pivots

As per the above pivots data, 18650 to 18760 is the Nifty 50 trading range.

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