Nifty’s Historic Milestone Market Ends Flat as it Surpasses 22,500 for the First Time

At the close, the Nifty 50 was at 22,493.55 up by 0.09%

The NSE Nifty 50 index commenced the trading session on a positive note, registering a modest increase of 0.09% and maintaining its upward trajectory throughout the day. Climbing to fresh all-time highs, the benchmark indices, including Nifty, surpassed the significant milestone of 22,500 for the first time, with Nifty50 peaking at 22,525.65. Eventually, the index closed at 22,493.55, marking a marginal gain of ~19 points or 0.09%.

Despite failing to capitalize on the initial gains, the market remained rangebound, closing the session on March 7 with minimal fluctuations. Notably, the market will remain closed on March 8 in observance of Mahashivratri.

Analyzing the daily charts, it’s evident that Nifty maintained its upward momentum, consolidating before the extended weekend. This consolidation phase is considered a brief pause in the overarching uptrend, with expectations of the upward movement resuming in the coming week.

The rally in Asian markets, spurred by US Federal Reserve Chair Jerome Powell’s assurance of potential rate cuts and dismissal of immediate recession risks, bolstered benchmark indices globally. Despite trading within a narrow range, the broader indices retained their gains throughout the day.

Moreover, equity benchmark indices experienced an upward trajectory, buoyed by a strong trend in the US market and increased Foreign Institutional Investor (FII) inflows. Positive sentiments were further fueled by faster-than-expected economic growth projections for the current fiscal year, particularly benefiting metal and capital goods stocks.

As global indices exhibit mixed sentiments, the upcoming release of non-farm payroll data will provide clarity on the labor market, potentially influencing future rate adjustments and market movements.

Bank Nifty: Down by 0.27%

The Bank Nifty began the trading day on a positive note, opening in the green, but concluded with a slight downturn, marking a decrease of 0.27% and closing in the red at 47,835.80. Conversely, the BSE Sensex witnessed a modest increase of 0.05%, opening the session with gains and ultimately closing in the green at a high of 74,119.39.

In the sectorial front, the media sector witnessed a substantial rise today, with a notable gain of 2.54%. Leading the surge were D.B.Corp Ltd., marking an impressive increase of 4.99%, closely followed by Zee Entertainment Enterprises Ltd., which saw a commendable rise of 4.12%. However, in contrast, the oil and gas industry experienced a setback, registering a decline of 1.20%. Notably, Bharat Petroleum Corporation Ltd. encountered a significant loss of -2.40%, while Aegis Logistics Ltd. also faced a downturn, losing -1.88%.

Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs) displayed robust activity in the Indian market, recording a buy value of Rs. 22,997.94 crore and a sale value of Rs. 15,693.83 crore. Consequently, the net value of their investments stood at Rs. 7,304.11 crore.

Similarly, Domestic Institutional Investors (DIIs) demonstrated active participation, with a buy value of Rs. 11,886.95 crore and a sale value of Rs. 9,285.14 crore, resulting in a net value of Rs. 2,601.81 crore.

Bank Nifty

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

The gainers included AU Bank with a 0.66% increase, IndusInd Bank with a 0.45% increase, State Bank of India with a 0.27% increase, HDFC Bank with a 0.24% increase. On the other hand, the biggest losers in the sector included Axis Bank with a 1.24% decline, IDFC First Bank with a 1.22% decline, Federal Bank with a 1.02% decline, ICICI Bank with a 0.97% decline, and Kotak Bank with a 0.57% decline. These results suggest that some of the banking stocks not performed better for the day.

Rupee Strengthens Against Dollar Amidst External Factors

The Indian rupee displayed resilience in early trading on Thursday, strengthening by 9 paise to reach 82.74 against the US dollar. This upward momentum was propelled by the weakening of the American currency in the global market and a consistent influx of foreign investments into domestic capital markets.

Positive sentiments from the equity markets also lent support to the local currency. However, the rupee’s gains were somewhat restrained by volatile crude oil prices, which tempered its upward trajectory.

Beginning the trading day at 82.82, the rupee further appreciated to trade at 82.74 against the greenback, marking a 9 paise increase from its previous close. In the preceding session, the rupee had settled 7 paise higher at 82.83 against the US dollar.

Conversely, the dollar index, reflecting the strength of the US dollar against a basket of six major currencies, experienced a marginal decline of 0.07%, reaching 103.24. This decline was influenced by the release of US payroll data, which revealed lower-than-expected job growth figures for February.

Meanwhile, Brent crude futures, the global benchmark for oil prices, recorded a slight decrease of 0.13%, trading at $82.85 per barrel. These fluctuations in oil prices further contributed to the dynamic environment influencing currency movements and market sentiments.

Stocks Highlights

Tata Consumer Products Ltd. Witnesses Positive Movement

Tata Consumer Products Ltd. observed a noteworthy uptick in its share price, marking a gain of 3.68% from its previous close of Rs 1,220.05. The stock last traded at Rs 1,265.00. Notably, historical data reveals that only 1.65% of trading sessions in the past 19 years recorded intraday gains exceeding 5%. Additionally, the company has efficiently managed its expenses, allocating less than 1% of its operating revenues towards interest expenses and 8.13% towards employee costs in the fiscal year ending March 31, 2023.

Mahindra & Mahindra Ltd. Faces Downturn Amid Promising Indicators

In contrast, Mahindra & Mahindra Ltd. experienced a decline of -3.99% in its share price, trading at Rs 1,892.00 from its previous close of Rs 1,970.65. Despite this, the company displays promising indicators, with a return on equity (ROE) of 18.24% in the fiscal year ending March 31, 2023, surpassing its 5-year average of 10.72%. Moreover, Mahindra & Mahindra Ltd. has outperformed its 3-year revenue compound annual growth rate (CAGR) with an impressive annual revenue growth of 34.43%. A recent bullish trend signal suggests potential gains, with historical data indicating an average price increase of 3.13% within 7 days following such signals over the past 5 years.

Advance Decline Ratio

Today, the advance-decline ratio was 1.59, and the market breadth was positive. The volatility index India Vix decreased by 4.77 percent to settle at 13.61 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1571
Decliners – 989
52Wk High –  74
52Wk Low – 33
High Band Hitters – 110
Low Band Hitters – 86
200d SMA – 20167
50d SMA – 21859
20d SMA – 22133

Top Gainers and Losers Stocks

The top gainers were Tata Consumer (+3.68%), Tata Steel (+3.59%), Bajaj Auto (+3.13%), UPL (+2.12%), and JSW Steel (+2.10%).

The top losers were M&M (-3.99%), BPCL (-2.40%), Reliance (-1.63%), Axis Bank (-1.24%), and LTIM (-1.03%).

Top Gainers and Losers Sector

The top gainers sector were Media (+2.54%), Metal (+1.38%), FMCG (+0.98%), Consumer Durables (+0.39%), and Pharma (+0.28%).

The top losers sector were Oil & Gas (-1.20%), Auto (-0.26%), Realty (-0.15%).

SECTORS – NOTABLE ACTION
MEDIA +2.54%
METAL +1.38%
FMCG +0.98%
OIL & GAS -1.20%
AUTO -0.26%
REALTY -0.15%

Stocks Ban List

(SEBI) F&O ban list (MGL open at -1330.00 and close at -1315.95), (MANAPPURAM open at -175.00 and close at -172.40), and (ZEEL open at -154.30 and close at +160.60) 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.

SAIL, TATACHEM, HINDCOPPER, ABFRL, BHEL, RBLBANK, PEL, BIOCON, NATIONALUM, IDEA, and BALRAMCHIN stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 22400 to 22600 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty 50 Records Historic High Amidst Market Recovery
Indian Stocks Close Lower After Four-Day Winning Streak
Energy and Bank Shares Drive Nifty to New Highs in Volatile Monday Trade

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