Nifty Takes the Lead as Markets Keep Climbing

At the close, the Nifty 50 was at 20,192.35 up by 0.44%

In the dynamic and ever-changing realm of Indian equity markets, recent trends have showcased remarkable resilience and outstanding performance. Despite occasional periods of turbulence, local indices have consistently delivered impressive gains, thanks in large part to favorable global factors.

At the commencement of the trading day, Indian equity markets surged to new heights, maintaining a positive trajectory throughout the session. The NSE Nifty 50, a benchmark for market performance, started strongly and closed the day with a 0.44 percent gain, settling around the 20,200 mark. This upward momentum is a clear reflection of robust investor confidence.

A key driver behind this buoyant environment is the anticipation that the US Federal Reserve will temporarily halt its rate hike cycle during its upcoming policy meeting. This strategic move, driven by moderating inflation, is poised to further bolster the already thriving local markets. Investors are encouraged by the prospect of a stable interest rate landscape, which has the potential to stimulate economic growth.

Moreover, the market landscape is undergoing a significant transformation, with renewed interest in automotive and information technology (IT) stocks. This resurgence is fueled by optimism surrounding festive season consumer demand and substantial deal victories. Additionally, positive economic indicators from China and the hope of global stimulus measures have injected an extra dose of optimism into the markets.

Bank Nifty: Up by 0.50%

The Bank Nifty, a key indicator of the banking sector’s health, has been steadily approaching its all-time high, reflecting a positive market sentiment. It kicked off the trading session on a positive note, with a 0.50 percent gain and ultimately closed impressively at 46,231.50. This strong performance underscores the banking sector’s resilience and its significant role in India’s economic landscape.

Equally notable is the performance of the BSE Sensex, India’s premier stock index, which also exhibited resilience by posting a 0.47 percent gain and closing at a high level of 67,838.63. This reflects a broader market trend, reaffirming the prevailing bullish sentiment.

In sector-specific performance, the Automotive sector has experienced a remarkable surge, with gains of 1.58 percent. Within this sector, Bajaj Auto Ltd. has emerged as a front-runner, boasting an impressive gain of 6.29 percent, while TVS Motor Company Ltd. also delivered commendably with a gain of 2.67 percent.

Conversely, the Oil & Gas sector faced headwinds, recording a decline of 0.75 percent. Within this sector, Indian Oil Corporation Ltd. bore the brunt of the downturn, with a substantial loss of -2.43 percent, closely followed by Aegis Logistics Ltd., which registered a loss of -2.41 percent.

Bank Nifty

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

The gainers included Bandhan Bank with a 3.94% increase, HDFC Bank with a 0.86% increase, IDFC First Bank with a 0.85% increase, ICICI Bank with a 0.43% increase, and Punjab National Bank with a 0.41% increase. On the other hand, the biggest losers in the sector included AU Bank with a 0.89% decline, Bank of Baroda with a 0.66% decline, Kotak Bank with a 0.50% decline, and IndusInd Bank with a 0.43% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

Bajaj Auto Ltd. witnessed a significant surge in its share price, climbing by an impressive 6.29% from its previous closing price of Rs 4,844.50. The stock’s last traded price stands at Rs 5,149.00. Notably, the company has tied its dividend payouts to its cash reserves. With the current levels of reserves, it’s anticipated that dividend payments for the fiscal year 2023 and beyond may experience a substantial increase. This reflects the company’s confidence in its financial stability and potential for growth.

Conversely, Bharat Petroleum Corporation Ltd. faced a decline, with its share price decreasing by -1.60 % from its previous closing price of Rs 358.75, settling at Rs 353.00. On September 13, 2023, a 14-day moving average crossover occurred, a significant technical signal. Historical data indicates that such crossovers have led to an average price gain of 3.65% within 7 days over the past 5 years. Additionally, 20-day and 200-day moving crossovers occurred on the same date, with similar positive historical price gain averages.

However, it’s worth noting that intraday gains higher than 5% have been relatively infrequent in the last 18 years, occurring in only 1.81% of trading sessions. This highlights the importance of considering various factors, including technical indicators, when evaluating investment decisions.

Advance Decline Ratio

Today, the advance-decline ratio was 1.16, and the market breadth was positive. The volatility index India Vix decreased by 3.66 percent to settle at 10.90 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1276
Decliners – 1104
52Wk High –  125
52Wk Low – 4
High Band Hitters – 88
Low Band Hitters – 23
200d SMA – 18449
50d SMA – 19588
20d SMA – 19609

Top Gainers and Losers Stocks

The top gainers were Bajaj Auto (+6.29%), Hero MotoCorp (+2.25%), M&M (+2.17%), Grasim (+1.99%), and HCL Technologies (+1.60%).

The top losers were BPCL (-1.60%), Hindustan Unilever (-1.27%), Asian Paint (-1.24%), Britannia (-0.97%), and Tata Consumer (-0.92%).

Top Gainers and Losers Sector

The top gainers sectors were Auto (+1.58%), IT (+0.94%), Pharma (+0.61%), Financial Services (+0.60%), and Consumer Durables (+0.50%).

The top losers sectors were Oil & Gas (-0.75%), FMCG (-0.48%), Realty (-0.39%), Metal (-0.16%), and Media (-0.10%).

The Nifty Midcap 50 was up by 0.46 percent, while the Nifty Small Cap 50 was up by 0.51 percent on the day.

The Nifty Midcap 50 index currently closed at 11,635.90, while the Nifty Small Cap 50 index currently closed at 5,865.90.

SECTORS – NOTABLE ACTION
AUTO +1.58%
IT +0.94%
PHARMA +0.61%
OIL & GAS -0.75%
FMCG -0.48%
REALTY -0.39%

Stocks Ban List

(SEBI) F&O ban list  (BALRAMCHIN open at +439.50 and close at +441.70), (BHEL open at +130.80 and close at -127.60), (ZEEL open at -272.95 and close at +274.15), (RECLTD open at +248.00 and close at -244.90), (IBULHSGFIN open at +192.00 and close at +191.90), (IEX open at +135.15 and close at -134.35), (MANAPPURAM open at +143.75 and close at -141.80), (NATIONALUM open at +100.75 and close at -97.35), (INDIACEM open at +251.00 and close at -247.40), (HINDCOPPER open at +163.00 and close at -161.30), (DELTACORP open at +182.15 and close at -180.70), and (SAIL open at +99.20 and close at -96.35) 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.

NMDC, IRCTC, CANBK, PNB, GRANULES, RBLBANK, INDUSTOWER, GNFC, PEL and PFC stocks has the possibilities of enterance in the ban list.

MANAPPURAM, NATIONALUM, INDIACEM, HINDCOPPER, DELTACORP, and SAIL stocks has the possibilities of exit from ban list.

Daily Pivots

As per the above pivots data, 20130 to 20250 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Indian Indices Survive Volatility with Marginal Gains
Revitalized Bulls Take Charge of the Market, Pushing Nifty Beyond the 20,000 Milestone
Volatility Persists as Nifty Hovers Around 20,000-Mark
Nifty Hits 20K Milestone in 7-Day Stock Rally

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