Nifty’s green rally continues, breaking new ground! Will this upward surge sustain, or is it a bull trap? 🐂🤔

At the close, the Nifty 50 was at 24,613.00 up by 0.11%

Today, NSE Nifty 50 kicked off in the green, rising by 0.11 percent, and closed on a positive note above 24,600. The Indian market extended its winning streak for the third consecutive session on July 16, with benchmarks hitting fresh record highs amid buying interest in IT, realty, and FMCG stocks.

A Steady Climb with Caution

Nifty opened positively and consolidated throughout the day, ending with a marginal gain of around 20 points. Despite the consolidation, Nifty 50 maintained its record closing high and continued its higher top-higher bottom formation for the third consecutive session. However, the formation of a Doji candlestick pattern at the top for another trading day is slightly concerning, signaling potential indecision in the market.

Market Highlights

1. Closing Figures: At the end of the day, Nifty was up 26.30 points or 0.11 percent, closing at 24,613.00.
2. Market Closure: The market will remain closed on July 17 (Wednesday) for Muharram.
3. Session Dynamics: After a positive start, Indian equity indices extended gains, hitting new milestones in the first half. However, selling pressure in the second half erased most of the day’s gains, resulting in marginal gains.

Back-to-back Doji candles at record levels indicate rejection at higher levels. Despite this, support levels have shifted higher, with immediate support now placed at 24,500.

NSE Nifty 50 reached a new record high in today’s trade but later pared some gains. Small- and mid-cap stocks surged to all-time highs, driven by robust quarterly earnings reports.

The domestic market struggled to sustain opening gains due to investor concerns about current valuations and subdued Q1FY25 earnings expectations. Globally, dovish comments from the FED chief on the inflation trajectory and a drop in the US 10-year yield increased the likelihood of a rate cut in September.

Today’s session, marked by record highs in intraday trade, concluded on a cautious note, reflecting mixed sentiments among investors.

Bank Nifty: Down by 0.11%

The Bank Nifty started the day on a positive note, opening in the green. However, the optimism was short-lived as it dipped by 0.11 percent, ultimately closing in red at 52,396.80. The fluctuation left traders and investors alike wondering about the next move in this volatile market.

BSE Sensex’s Steady Climb Contrastingly, the BSE Sensex had a relatively stable performance. It edged up by 0.06 percent, maintaining its upward momentum and closing in the green at an impressive 80,716.55.

In the sectorial landscape, the Realty sector emerged as a top performer, witnessing a significant surge of 1.66%. Leading this upward trend, Sobha Ltd. saw an impressive gain of 3.81%, while Sunteck Realty Ltd. followed closely with a 3.35% increase.

Conversely, the Media sector faced challenges, ending the day as the top loser with a decline of 1.03%. Within this sector, Zee Entertainment Enterprises Ltd. experienced a notable drop of 2.95%, and PVR Inox Ltd. also struggled, losing 1.80%.

Foreign Institutional Investors (FII/FPI) exhibited robust buying sentiment with a buy value of Rs. 14,482.47 crore and a sale value of Rs. 13,211.02 crore. This resulted in a net inflow of Rs. 1,271.45 crore into the Indian markets.

Contrastingly, Domestic Institutional Investors (DII) recorded a higher sale value of Rs. 15,465.34 crore against a buy value of Rs. 14,935.86 crore. As a result, there was a net outflow of Rs. 529.48 crore from the market.

Bank Nifty

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

The gainers included Bandhan Bank with a 1.42% increase, ICICI Bank with a 0.71% increase, Federal Bank with a 0.33% increase, Bank of Baroda with a 0.12% increase, and State Bank of India with a 0.07% increase.

On the other hand, the biggest losers in the sector included Kotak Bank with a 1.99% decline, Punjab National Bank with a 0.77% decline, AU Bank with a 0.70% decline, IndusInd Bank with a 0.19% decline, and IDFC First Bank with a 0.17% decline. These results suggest that some of the banking stocks performed better for the day.

Gold and Silver

Today 22 Carat Gold Price Per Gram in India (INR)

Today 24 Carat Gold Price Per Gram in India (INR)

Today Silver Price 1 Gram/KG in India (INR)

Rupee Gains Amid Firm Markets and Foreign Capital Inflows

The Indian rupee danced to a mixed tune on Tuesday, ultimately closing with a modest 3 paise gain against the US dollar at 83.58. While domestic equities and foreign funds brought cheer, the rupee’s journey wasn’t without its ups and downs.

A cooling crude oil market gave the rupee a temporary boost, but the mighty US dollar kept the celebrations in check. The local currency swayed between an intraday high of 83.53 and a low of 83.60 before settling with a small win.

It’s worth noting that Monday saw the rupee lose 10 paise, painting a slightly different picture. However, the dollar index, which tracks the greenback’s performance against other major currencies, was also on the rise, adding a layer of complexity to the rupee’s story.

As the markets continue to ebb and flow, traders will be watching closely to see if the rupee can maintain its upward momentum or if new challenges will emerge.

Stocks Highlights

Coal India Ltd: Strong Upsurge

Coal India Ltd. witnessed a notable share price increase of 3.01%, rising from its previous close of Rs 497.75 to a last traded price of Rs 512.75. Historically, over the past 13 years, only 1.06% of trading sessions have recorded intraday gains exceeding 5%.

• Expense Overview: In the year ending March 31, 2024, the company allocated less than 1% of its operating revenues to interest expenses, while 34.28% went towards employee costs.
• Buy Signal: A positive weekly stochastic crossover was noted for the week ending July 12, 2024, indicating a bullish trend. Historically, this signal has led to an average price gain of 6.48% within 7 weeks over the last decade.
• Stock Returns: Over three years, Coal India delivered an impressive return of 218.25%, significantly outperforming the Nifty 100, which returned 52.57%.

Shriram Finance Ltd: Decline in Shares

In contrast, Shriram Finance Ltd. experienced a share price decline of 2.16%, dropping from Rs 2,882.30 to a last traded price of Rs 2,820.00. Over the last 19 years, just 3.39% of trading sessions have seen intraday gains surpassing 5%.

• Expense Overview: The company reported spending 42.67% of its operating revenues on interest expenses and 9.54% on employee costs for the year ending March 31, 2024.
• Buy Signal: A 14-day moving average crossover occurred recently, suggesting bullish momentum. This signal has historically led to an average price gain of 3.83% within 7 days over the past five years.
• Stock Returns: Shriram Finance provided a three-year return of 100.57%, also outperforming the Nifty 100‘s 52.57% return.

Advance Decline Ratio

Today, the advance-decline ratio was 1.00, and the market breadth was positive. The volatility index India Vix decreased by 0.24 to settle at 14.15 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1322
Decliners – 1327
52Wk High – 156
52Wk Low – 15
High Band Hitters – 124
Low Band Hitters – 78
200d SMA – 21692
50d SMA – 23265
20d SMA – 24102

Top Gainers and Losers Stocks

The top gainers were Coal India (+3.01%), BPCL (+2.71%), Hindustan Unilever (+2.44%), Tata Consumer (+2.28%), and Bharti Airtel (+1.81%).

The top losers were Shriram Finance (-2.16%), Kotak Bank (-1.99%), Dr. Reddy (-1.55%), Reliance (-1.44%), and NTPC (-1.35%).

Top Gainers and Losers Sectors

The top gainers sector were Realty (+1.66%), FMCG (+0.96%), IT (+0.59%), Auto (+0.25%), and Consumer Durables (+0.15%).

The top losers sector were Media (-1.03%), Pharma (-0.38%), Financial Services (-0.18%), Oil & Gas (-0.16%), and Metal (-0.08%).

SECTORS – NOTABLE ACTION
REALTY +1.66%
FMCG +0.96%
IT +0.59%
MEDIA -1.03%
PHARMA -0.38%
FINANCIAL SERVICES -0.18%

Stocks Ban List

(SEBI) F&O ban list (GMRINFRA open at -98.00 and close at +96.91), (HINDCOPPER open at +331.65 and close at -329.05), (RBLBANK open at -246.40 and close at -243.85), (INDUSTOWER open at +401.90 and close at +406.85), (GNFC open at -681.95 and close at +686.40), (CHAMBLFERT open at +509.00 and close at -505.40), (INDIACEM open at +310.00 and close at +323.15), and (ABFRL open at +330.00 and close at +330.20) 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.

TATACHEM, IDFCFIRSTB, IDEA, SAIL, NMDC, BIOCON, RAMCOCEM, MANAPPURAM, IRCTC, PVRINOX, PNB, and VEDL stocks has the possibilities of entrance in the ban list.

GNFC, CHAMBLFERT, INDIACEM, and ABFRL stocks has the possibilities of exit from ban list.

Daily Pivots

As per the above pivots data, 24450 to 24750 is the Nifty 50 trading range.

Read Previous -Daily Insights- here
Nifty 50 Skyrockets, New Highs – Is This the Peak?
Indian Benchmarks Surge Against the Odds! What’s Driving This Rally?
From Ups to Downs: What Sparked the Dramatic Turn in Today’s Market?

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