Nifty Surges Past 23,100 in Positive Start, Erases Gains in Last Hour

At the close, the Nifty 50 was at 22,932.45 down by 0.11%

On Monday, the NSE Nifty 50 index witnessed a tumultuous trading session, starting positively but closing with a slight decline of 0.11%, settling above the 22,900 mark. Despite initial gains, the index closed below its intraday high of 23,110.80, experiencing last-hour selling pressure that erased the day’s earlier gains. This volatility was emblematic of broader market movements, as benchmark indices on Dalal Street continued their record-breaking streak, bolstered by strong buying activity in realty, banking, and Information Technology sectors.

While the Nifty briefly surpassed the 23,000 level, it failed to sustain this milestone due to a bearish sentiment in the final trading hour and increased volatility ahead of monthly F&O expiry and impending exit polls. Despite the overarching positive trend, investors faced resistance at the 23,000 levels, prompting profit-booking activities to mitigate potential market volatility.

Key positive triggers, including better earnings growth prospects, expectations of a revival in private capital expenditure, and a moderation in Foreign Institutional Investors (FIIs) selling intensity, supported market sentiment. However, investors remained cautious amidst heightened uncertainties surrounding upcoming events and economic data releases, such as India’s Q4 GDP and US inflation figures, which are expected to influence market direction in the near term.

The Indian stock market indexes surged to fresh record highs, reflecting the broader upward trend observed in Asian markets. Despite challenges in sustaining above key resistance levels, the overall market sentiment remained positive, driven by favorable triggers and sectoral strengths.

Bank Nifty: Up by 0.63%

Bank Nifty commenced the trading day on a positive note, opening in the green and experiencing a notable uptick of 0.63%. The bullish momentum persisted throughout the day, with Bank Nifty closing in the green at 49,281.80, reflecting robust performance within the banking sector.

In contrast, the BSE Sensex witnessed a slight decline of 0.03%, opening the session with a dip that continued till closing. The Sensex concluded the day in the red, reaching a low of 75,390.50, albeit displaying relative stability compared to Bank Nifty’s gains.

On the sector front, the Real Estate sector showed strong performance with a notable gain of 0.85%. Leading the charge, Godrej Properties Ltd. saw an impressive increase of 3.62%, while Sobha Ltd. also experienced a solid rise of 2.38%.

Conversely, the media sector emerged as the top loser, recording a decline of 0.97%. Sun TV Network Ltd. led the downturn with a significant drop of 4.25%. Dish TV India Ltd. also faced challenges, posting a loss of 2.63%.

Foreign Institutional Investors (FIIs/FPIs) witnessed a net selling activity, with a buy value of Rs. 14,013.38 crore and a sale value of Rs. 14,554.60 crore, resulting in a net value of -Rs. 541.22 crore. Conversely, Domestic Institutional Investors (DIIs) demonstrated a net buying trend, recording a buy value of Rs. 12,902.57 crore and a sale value of Rs. 11,979.97 crore, leading to a net value of Rs. 922.60 crore.

Bank Nifty

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

The gainers included Punjab National Bank with a 2.85% increase, AU Bank with a 2.63% increase, IDFC First Bank with a 1.87% increase, Bandhan Bank with a 1.50% increase, and IndusInd Bank with a 1.39% increase.

On the other hand, the biggest losers in the sector included ICICI Bank with a 0.21% decline, and Federal Bank with a 0.03% decline. These results suggest that most of the banking stocks performed better for the day.

Rupee Ends Lower Amid Mixed Market Signals

On Monday, the rupee relinquished its early gains, closing 4 paise lower at 83.14 against the US dollar. This decline paralleled the benchmark indices, which also retreated from their record-high levels. Initially, the rupee opened at 83.08, briefly reaching an intra-day high of 83.05, before ending the day at 83.14. This movement reflects a narrow trading range influenced by contrasting market factors.

The rupee’s performance was supported by the weakness of the US dollar in the global market, yet elevated crude oil prices capped its potential rise. Brent crude futures, the global oil benchmark, climbed 0.47% to $82.51 per barrel, exerting pressure on the local currency. Despite these headwinds, the rupee had previously shown strength, rallying for four consecutive sessions and gaining 19 paise to settle at 83.10 against the dollar on Friday.

Meanwhile, the dollar index, which measures the greenback against a basket of six major currencies, slightly decreased by 0.05%, trading at 104.67. The interplay between the weakening dollar and rising crude prices created a challenging environment for the rupee. Investors will continue to monitor these factors closely, as they significantly influence currency movements and market sentiment.

The rupee’s fluctuations underscore the impact of global market dynamics, including the performance of the US dollar and crude oil prices. While the currency has shown resilience, ongoing volatility and economic indicators will play a crucial role in its future trajectory.

Stocks Highlights

Divi’s Laboratories Ltd. experienced a notable increase in its share price, rising by 2.99% from its previous close of Rs 4,122.40 to Rs 4,245.55. Despite a modest three-year return of 1.06% compared to Nifty 100’s 54.07%, the stock recently gave a bullish signal with a weekly stochastic crossover on May 24, 2024. Historically, this indicator has led to an average price gain of 5.61% within seven weeks over the last decade. Financially, the company maintains efficiency, spending less than 1% of operating revenues on interest expenses and 13.95% on employee costs for the fiscal year ending March 31, 2024.

Adani Enterprises Ltd. saw its share price decline by 2.66%, falling from Rs 3,384.95 to Rs 3,295.05. Despite this drop, the company announced a dividend of Rs 1.3 per share, with a record date set for June 14, 2024. Notably, Adani Enterprises experienced a 28.87% contraction in sales, marking the first revenue decline in three years. However, the stock also flashed a bullish signal with a weekly stochastic crossover on May 24, 2024, typically resulting in an average price gain of 12.62% within seven weeks historically. Over the past three years, the stock has delivered an impressive return of 155.31%, significantly outperforming Nifty 100’s 54.07%.

Advance Decline Ratio

Today, the advance-decline ratio was 0.65, and the market breadth was negative. The volatility index India Vix increased by 6.82 percent to settle at 23.19 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1036
Decliners – 1592
52Wk High – 148
52Wk Low – 33
High Band Hitters – 105
Low Band Hitters – 118
200d SMA – 20987
50d SMA – 22351
20d SMA – 22461

Top Gainers and Losers Stocks

The top gainers were Divi’s Laboratories (+2.99%), IndusInd Bank (+1.39%), Adani Ports (+1.17%), Axis Bank (+1.13%), and LTIM (+1.04%).

The top losers were Adani Enterprises (-2.66%), Wipro (-2.17%), Grasim (-2.09%), SBI Life (-2.04%), and ONGC (-1.75%).

Top Gainers and Losers Sectors

The top gainers sector were Realty (+0.85%), Financial Services (+0.52%), IT (+0.51%), and Consumer Durables (+0.26%).

The top losers sector were Media (-0.97%), Metal (-0.62%), Oil & Gas (-0.55%), FMCG (-0.34%), and Auto (-0.06%).

SECTORS – NOTABLE ACTION
REALTY +0.85%
FINANCIAL SERVICES +0.52%
IT +0.51%
MEDIA -0.97%
METAL -0.62%
OIL & GAS -0.55%

Stocks Ban List

(SEBI) F&O ban list (HINDCOPPER open at -375.00 and close at -368.40), (BIOCON open at +318.95 and close at -314.95), (IDEA open at +15.20 and close at +15.05), (GNFC open at -646.55 and close at +665.40), (PEL open at +823.10 and close at +829.40), (PNB open at -126.25 and close at +129.55), (INDIACEM open at -210.00 and close at +213.50), (BANDHANBNK open at -187.10 and close at +189.05), (NATIONALUM open at +194.50 and close at +194.35) 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.

ABFRL, ASHOKLEY, TATACHEM, GMRINFRA, IDFCFIRSTB, JUBLFOOD, SAIL, CANBK, BSOFT, CHAMBLFERT, and NMDC stocks has the possibilities of entrance in the ban list.

PNB, INDIACEM, BANDHANBNK, and NATIONALUM stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 22750 to 23100 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Pulls Back from Peak Levels Due to Global Market Weakness
Weekly Trade Ends on High Note Bulls Drive Index to Record Level
Domestic Equity Indices Overcome Weak Start to Surge Higher

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