Nifty’s Relentless Rise: What’s Propelling This Rally Amid Fed Uncertainty?

At the close, the Nifty 50 was at 24,951.15 up by 0.38%

On Wednesday, the NSE Nifty 50 started the day on a positive note, advancing by 0.38% and closing in green. The index ended at 24,951.15 points, inching closer to the significant 25,000 threshold. Despite several attempts, the Nifty has yet to breach this milestone, although it remains in close proximity.

Benchmark equity indices ended the day favorably, buoyed by gains in European and Asian markets. The Nifty 50 saw a consolidation breakout on the hourly chart, with the Relative Strength Index (RSI) displaying a bullish crossover on both hourly and daily timeframes.

The index experienced a range-bound movement after an initial morning surge, concluding July with a solid gain of 93.85 points.

The broader market exhibited a mixed trend. While midcaps outperformed, smallcaps lagged, ending in the red. The Nifty 50 has surged for four back-to-back trading sessions, marking a 4% increase over July 2024.

As we look ahead, Federal Reserve officials are anticipated to signal a possible interest rate cut in September, potentially bringing rates down from their highest levels in two decades. However, details may be limited. With the Federal Open Market Committee expected to keep the benchmark rate between 5.25% and 5.5%, it remains to be seen how this will impact global and domestic markets. Stay tuned for further updates and insights.

Bank Nifty: Up by 0.11%

The Bank Nifty kicked off on a positive note, gaining 0.11% and closing at 51,553.40. This modest rise reflects the sector’s steady performance and investor confidence. Meanwhile, the BSE Sensex also enjoyed a solid day, climbing 0.35% to finish at an impressive 81,741.34.

In the sectorial front, Metal stocks emerged as the undisputed champions, soaring by a robust 1.22%. Leading the charge were industry titans Steel Authority of India Ltd., which climbed by an impressive 3.71%, and JSW Steel Ltd., which followed closely behind with a gain of 3.43%.

However, the realty sector painted a contrasting picture, emerging as the day’s laggard with a decline of 0.37%. The Phoenix Mills Ltd. bore the brunt of the downturn, shedding a significant 2.96%, while Prestige Estates Projects Ltd. also faced headwinds, losing 1.63%.

Foreign Institutional Investors (FII) were net sellers in the recent trading session, with a buy value of Rs 20,048.84 crore and a sale value of Rs 23,511.20 crore, resulting in a net outflow of Rs 3,462.36 crore.

Conversely, Domestic Institutional Investors (DII) exhibited strong buying activity. With a buy value of Rs 16,592.56 crore and a sale value of Rs 13,226.05 crore, DIIs recorded a net inflow of Rs 3,366.51 crore.

Bank Nifty

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

The gainers included Kotak Bank with a 1.40% increase, ICICI Bank with a 0.55% increase, State Bank of India with a 0.18% increase, HDFC Bank with a 0.15% increase, and IDFC First Bank with a 0.12% increase.

On the other hand, the biggest losers in the sector included Punjab National Bank with a 1.26% decline, Bandhan Bank with a 0.98% decline, AU Bank with a 0.84% decline, Bank of Baroda with a 0.68% decline, and Axis Bank with a 0.19% decline. These results suggest that most of the banking stocks performed better for the day.

Gold and Silver Rate (INR) 31 July, 2024

Rupee Edges Up, Crude Climbs Amidst Dollar Weakness

In early trading on Wednesday, the rupee saw a modest gain of 2 paise, strengthening to 83.71 against the US dollar. This uptick was fueled by a slight dip in the dollar’s value in international markets. Opening at 83.72 on the interbank currency exchange, the domestic currency traded within a narrow band of 83.70 to 83.72 throughout the session.

Despite this positive movement, the rise in Brent crude oil prices posed a challenge. Brent crude futures increased by 1.49%, reaching USD 79.80 per barrel, which somewhat offset the rupee’s gains. Additionally, the dollar index, which measures the greenback’s performance against a basket of six major currencies, fell by 0.19% to 104.36.

Investors are keenly awaiting the US Federal Reserve’s rate announcement later today, with many speculating that a potential rate cut could be signaled as early as September. How will these developments impact global and domestic financial markets? Stay tuned for the latest updates.

Stocks Highlights

Maruti Suzuki India Ltd.’s share price surged by 3.89%, moving from Rs 12,873.65 to Rs 13,375.00. This remarkable increase reflects the company’s strong performance, boasting a return on equity (ROE) of 15.75% for the year ending March 31, 2024, outperforming its five-year average of 11.7%.

Despite generating an 84.5% return over three years, Maruti Suzuki lagged behind the Nifty Auto, which delivered a stunning 162.99% return. Notably, the company maintained fiscal discipline, spending less than 1% of its operating revenues on interest expenses and 4.44% on employee costs.

Conversely, Britannia Industries Ltd. faced a setback, with its share price declining by 0.72% from Rs 5,842.20 to Rs 5,800.00. The company reported a quarter-on-quarter revenue drop of 4.18%, marking its lowest in three years.

A bearish trend looms, as indicated by a five-day moving average crossover, which historically led to an average price decline of 1.84% within seven days. Over the past three years, Britannia’s stock delivered a return of 70.65%, outperforming the Nifty 100’s 61.48%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.09, and the market breadth was positive. The volatility index India Vix increased by 3.26 to settle at 13.30 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1400
Decliners – 1280
52Wk High – 206
52Wk Low – 20
High Band Hitters – 145
Low Band Hitters – 62
200d SMA – 21945
50d SMA – 23748
20d SMA – 24531

Top Gainers and Losers Stocks

The top gainers were Maruti (+3.89%), JSW Steel (+3.43%), HDFC Life (+2.80%), Asian Paint (+2.74%), and NTPC (+2.19%).

The top losers were Britannia (-0.72%), Dr. Reddy (-0.71%), Apollo Hospitals (-0.65%), Tata Consumer (-0.58%), and Reliance (-0.57%).

Top Gainers and Losers Sectors

The top gainers sector were Metal (+1.22%), Pharma (+1.10%), Media (+1.07%), FMCG (+0.43%), and Auto (+0.39%).

The top losers sector were Realty (-0.37%), and Oil & Gas (-0.04%).

SECTORS – NOTABLE ACTION
METAL +1.22%
PHARMA +1.10%
MEDIA +1.07%
REALTY -0.37%
OIL & GAS -0.04%

Stocks Ban List

(SEBI) F&O ban list (INDIACEM open at -369.10 and close at -364.25) 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.

RBLBANK, MANAPPURAM, INDUSTOWER, BANDHANBNK, and ABFRL stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 24750 to 25100 is the Nifty 50 trading range.

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