Nifty Surges with a Gap Up Opening, Gains 89 Points by Closing

At the close, the Nifty 50 was at 19,783.40 up by 0.45%

The trading day witnessed a resilient performance by the NSE Nifty 50, starting positively with a 0.45% gain and sustaining momentum to close in the green zone. This robust upward trend effectively counterbalanced losses from the past two sessions, primarily driven by widespread buying activities across various sectors. Notably, the index initiated with a significant gap up, solidifying its stance and concluding with an impressive ~89 point surge, settling at 19,783.40.

The market initiated on a strong footing and progressively accumulated gains, largely supported by the Metal sector and influential heavyweight stocks. The Nifty’s consistent maintenance above the critical support level of 19,500 fostered an optimistic sentiment among traders and investors.

Meanwhile, global attention centered on the Federal Reserve’s meeting minutes. Interpretations of declining inflation and recent cooling job data in the US hinted at a potential dovish stance from the Fed. Speculations led to a decline in bond yields and the dollar index, heightening expectations of an upcoming peak in the interest rate cycle. This forecast is likely to attract investments towards emerging markets, augmenting their appeal for potential investors.

Today’s market upswing prominently featured the consumer durables and realty sectors, capitalizing on a robust resurgence in festive demand. The broad positive momentum underscored renewed confidence and optimism among investors, further boosting market sentiment.

The Nifty 50’s reversal of recent losses amidst sectoral strength and global market dynamics presents an encouraging outlook, suggesting the potential for sustained upward momentum. This resurgence reflects the market’s adaptability and resilience, positioning it favorably for further positive movements in the foreseeable future.

Bank Nifty: Up by 0.24%

The Indian equity markets displayed a mixed performance today, with both the Bank Nifty and BSE Sensex registering gains. The Bank Nifty commenced positively, securing a 0.24% increase and closing at 43,689.15, while the BSE Sensex concluded at 65,930.77, marking a 0.42% upward movement.

Within this dynamic market scenario, the Bank Nifty exhibited lateral movement, indicating a sideways momentum characterized by lower volumes. Its proximity to the 20-day moving average (20DMA) signaled a neutral market stance, indicative of consolidation or balance in the index’s trading range around its short-term moving average.

In the sectorial landscape, the metal sector notably surged by 1.22%, spearheaded by Welspun Corp Ltd. with an impressive 2.76% gain, followed closely by Adani Enterprises Ltd. recording a commendable 2.22% increase.

However, the IT sector faced a minor setback, emerging as the top loser with a 0.18% decline. Coforge Ltd. experienced a notable loss of -1.41%, while Tech Mahindra Ltd. encountered a milder decrease of -0.81%.

Foreign Institutional Investors (FIIs/FPIs) depicted a net selling activity in the Indian equity markets, selling stocks worth Rs. 10,927.42 crore and buying shares amounting to Rs. 10,471.83 crore, resulting in a net value of -Rs. 455.59 crore. Conversely, Domestic Institutional Investors (DIIs) engaged in net buying, purchasing stocks worth Rs. 6,361.92 crore and selling shares totaling Rs. 5,640.40 crore, resulting in a net value of Rs. 721.52 crore.

Bank Nifty

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

The gainers included HDFC Bank with a 0.87% increase, ICICI Bank with a 0.65% increase, Axis Bank with a 0.41% increase, and IDFC First Bank with a 0.24% increase. On the other hand, the biggest losers in the sector included AU Bank with a 2.13% decline, Bank of Baroda with a 1.09% decline, Punjab National Bank with a 0.77% decline, Federal Bank with a 0.58% decline, and State Bank of India with a 0.42% decline. These results suggest that some banking stocks not performed better for the day.

Buzz

Rupee Recovers Marginally Against US Dollar Amidst Global Market Fluctuations

In recent trading sessions, the Indian rupee displayed a slight recovery against the US dollar, closing 4 paise higher at 83.34. This modest uptick followed the weakening of the American currency in the international market and positive movements in the domestic equities.

The rupee’s performance remained within a narrow range, influenced by varying factors. Notably, sustained dollar demand from oil marketing companies and continued foreign fund outflows exerted pressure on investor sentiments, restricting the rupee’s upward momentum.

At the interbank foreign exchange, the rupee commenced trading at 83.33, eventually settling at 83.34 against the greenback, marking a marginal gain from its previous close. Throughout the day, the rupee maintained a range-bound trajectory, oscillating between an intra-day high of 83.32 and a low of 83.37 against the US dollar.

Monday witnessed the rupee declining by 12 paise, culminating in an all-time low of 83.38 against the US dollar, indicating ongoing volatility and sensitivity to market fluctuations.

Traders are closely monitoring key indicators like existing home sales data from the US, FOMC minutes, and volatility in crude oil prices, all of which are likely to influence the rupee’s movement. Expectations suggest the USD-INR spot price to maintain a range between 83 and 83.70 in the near term.

Furthermore, global market trends reveal the dollar index experiencing a 0.06% decline at 103.37, while Brent crude futures, the international oil benchmark, recorded a 0.79% decrease, settling at $81.67 per barrel. These global shifts underscore the intricate interplay impacting the rupee’s performance against the US dollar amidst prevailing market uncertainties.

Buzzing

SBI Life Insurance Company Ltd. witnessed a positive surge, marking a 2.72% increase from its previous close of Rs 1,385.30, reaching a last traded price of Rs 1,423.00. Technical indicators suggest a bullish sentiment, with weekly MACD and stochastic crossovers signaling potential dominance by bulls. Historical data over the past decade reflects an average price gain of 6.98% within seven weeks post-MACD signal and 6.02% post-stochastic crossover. Notably, intraday declines higher than 5% occurred in a minimal 0.72% of trading sessions over the last six years, showcasing a relatively stable trend.

Conversely, Tech Mahindra Ltd. experienced a slight decline of -0.81%, settling at a last traded price of Rs 1,202.00 from its previous close of Rs 1,211.80. Despite the dip, a bullish signal was noted with a weekly stochastic crossover. Historical data for the past decade indicates an average price gain of 6.58% within seven weeks following this signal. Moreover, a mere 2.18% of trading sessions in the last 17 years witnessed intraday gains higher than 5%, portraying a steady market movement.

Advance Decline Ratio

Today, the advance-decline ratio was 1.17, and the market breadth was positive. The volatility index India Vix increased by 0.69 percent to settle at 12.23 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1315
Decliners – 1120
52Wk High –  193
52Wk Low – 10
High Band Hitters – 129
Low Band Hitters – 53
200d SMA – 18729
50d SMA – 19595
20d SMA – 19353

Top Gainers and Losers Stocks

The top gainers were SBI Life (+2.72%), HDFC Life (+2.24%), Adani Enterprises (+2.22%), Hindalco (+1.86%), and JSW Steel (+1.75%).

The top losers were BPCL (-1.28%), Tech Mahindra (-0.81%), LTIM (-0.63%), NTPC (-0.52%), and Larsen & Toubro (-0.45%).

Top Gainers and Losers Sector

The top gainers sector were Metal (+1.22%), Realty (+1.13%), Media (+1.12%), Consumer Durables (+1.06%), and Pharma  (+1.03%).

The top losers sector were IT (-0.18%), and FMCG (-0.16%).

SECTORS – NOTABLE ACTION
METAL +1.22%
REALTY +1.13%
MEDIA +1.12%
IT -0.18%
FMCG -0.16%

Stocks Ban List

(SEBI) F&O ban list (HINDCOPPER open at -158.55 and close at +158.60), (NMDC open at +171.85 and close at -169.70), (IBULHSGFIN open at -190.00 and close at -186.75), (BHEL open at -141.50 and close at -139.60), (RBLBANK open at -231.45 and close at +236.15), (INDIACEM open at +219.05 and close at +218.85), (MCX open at +2893.60 and close at +2905.90), (ZEEL open at -243.35 and close at +251.75), (MANAPPURAM open at -155.15 and close at -153.45), (CHAMBLFERT open at -305.00 and close at +310.60), and (DELTACORP open at -137.60 and close at +139.15) 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.

BALRAMCHIN, BIOCON, HINDPETRO, SAIL, PNB, L&TFH, TATACHEM, GNFC, and METROPOLIS stocks has the possibilities of enterance in the ban list.

DELTACORP stock has the possibilities of exit from ban list.

Daily Pivots

As per the above pivots data, 19730 to 19850 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Time Correction Despite Banking Underperformance
RBI’s Latest Move Puts Pressure on Financials in India
Market Continues Gains Despite Late-Day Selling

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