Nifty’s streak continues, but is the market hiding something?

At the close, the Nifty 50 was at 25,279.85 flat by 0.00%

September 3, 2024. The NSE Nifty 50 has been riding a wave of green for 14 consecutive sessions, but today’s market action left investors with more questions than answers. The index started strong, only to see its gains evaporate, closing with a meager rise of just 1.15 points at 25,279.85. Despite this, the Nifty 50 has managed to stay above the 25,200 mark for the third day in a row, signaling a consolidation phase.

But here’s where it gets interesting: the index is now wrestling with resistance in the 25,300-25,350 zone. Traders are watching closely—will this level prove to be an insurmountable barrier, or will the bulls break through?

Volatility dipped slightly as the India VIX fell by 0.96% to 13.93. This decline might suggest that the bulls are still in control, but the lack of strong momentum raises a crucial question: Is the rally losing steam?

Adding to the uncertainty, global cues are in play. Investors have their eyes on the upcoming U.S. manufacturing data and jobs report, both of which could sway the Federal Reserve’s next move on interest rates. Back home, the market is dealing with a slowdown in manufacturing activities, stoking concerns about demand. Yet, there’s a silver lining: predictions of an above-normal monsoon and increased government spending in the latter half of FY25 have provided a boost, especially for FMCG and rural-based stocks.

As the Nifty 50 hovers near record highs, the tension is palpable. Will the index shatter its current range, or is a pullback imminent? With both global and domestic factors in the mix, the next few days could be crucial. Are we merely witnessing the calm before the storm, or do the bulls have more tricks up their sleeve?

Bank Nifty: Up by 0.49%

Today, the Bank Nifty kicked off with a spark, rising by 0.49 percent and ending the day in the green at 51,689.10. It’s a sign of resilience amidst market fluctuations, but the BSE Sensex took a different path, slipping by 0.01 percent to close in the red at 82,555.44.

In the sectorial front, the Consumer Durables sector took center stage with an impressive gain of 1.31%, signaling a strong investor interest. Within this sector, Dixon Technologies (India) Ltd. stood out, surging by 3.06%, while V-Guard Industries Ltd. followed closely with a 2.64% rise.

On the flip side, the Media sector faced a challenging day, emerging as the top loser with a decline of 1.44%. Zee Entertainment Enterprises Ltd. led the downturn, dropping by a significant 3.52%. Sun TV Network Ltd. also struggled, losing 1.55% in value.

Foreign Institutional Investors (FIIs) recorded a buy value of Rs. 19,444.04 crore, while their sales amounted to Rs. 18,414.79 crore. This resulted in a net buying value of Rs. 1,029.25 crore.

Domestic Institutional Investors (DIIs) demonstrated even stronger participation. They had a buy value of Rs. 11,867.28 crore and a sale value of Rs. 9,971.07 crore, leading to a net buying value of Rs. 1,896.21 crore.

Bank Nifty

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

The gainers included ICICI Bank with a 1.39% increase, HDFC Bank with a 0.68% increase, Federal Bank with a 0.27% increase, Kotak Bank with a 0.21% increase, and Axis Bank with a 0.19% increase.

On the other hand, the biggest losers in the sector included Bank of Baroda with a 1.22% decline, Punjab National Bank with a 1.03% decline, IndusInd Bank with a 0.63% decline, AU Bank with a 0.56% decline, and Bandhan Bank with a 0.10% decline. These results suggest that most of the banking stocks performed better for the day.

Gold and Silver Rate (INR) 3rd September, 2024

Rupee Slides Amidst Global Greenback Strength—Is Stability on the Horizon?

On Tuesday morning, the rupee fell by 4 paise to 83.95 against the US dollar. This decline is attributed to a stronger dollar in global markets and disappointing domestic manufacturing data. The local unit opened at 83.94, lower by 3 paise from the previous close, and slipped further to 83.95, down from Monday’s finish of 83.91.

August has been a tough month for the rupee, which is now the second-worst-performing currency in Asia. With the rupee struggling to maintain its footing above the 83.90 level, it has erased all of last week’s gains. The currency has been trading within a narrow band of 83.70 to 84.05, slipping by around 0.17% this month despite a notable correction in the dollar index.

Caught in a delicate balance between positive and negative factors, the rupee’s stability largely hinges on the actions of the Reserve Bank of India. The central bank’s active intervention has managed to keep the rupee within this tight range. As long as the RBI continues its vigilant oversight, the rupee is expected to remain relatively stable. Will this support be enough to steer the rupee back to stronger ground? The coming days could be crucial.

Stocks Highlights

SBI Life Insurance made a notable move, with its share price climbing by 1.72% from Rs 1,888.75 to Rs 1,921.15. This uptick reflects growing investor confidence, fueled by the company’s solid financial footing. SBI Life’s ability to comfortably cover its contingent liabilities with ample cash reserves is a testament to its stability.

Even more impressive is its annual revenue growth of 62.23%, far exceeding its three-year CAGR of 17.13%. Adding to the positive sentiment, a recent weekly stochastic crossover on August 30, 2024, has sparked further optimism, typically leading to a 5.94% price gain within seven weeks.

In contrast, Bajaj Finance Ltd. faced a dip, with its share price falling by 1.36% from Rs 7,440.05 to Rs 7,338.50. Despite this drop, Bajaj Finance still boasts an annual revenue growth of 32.79%, outpacing its three-year CAGR of 26.95%.

The company’s own weekly stochastic crossover, also on August 30, 2024, usually signals a bullish trend, with an average price gain of 8.95% within seven weeks. However, its three-year return has been underwhelming at -0.78%, falling short of the Nifty 100’s robust 50.1% 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 0.96 to settle at 13.93 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1347
Decliners – 1351
52Wk High – 145
52Wk Low – 28
High Band Hitters – 100
Low Band Hitters – 69
200d SMA – 22550
50d SMA – 24510
20d SMA – 24682

Top Gainers and Losers Stocks

The top gainers were SBI Life (+1.72%), Bajaj Finserv (+1.40%), ICICI Bank (+1.39%), HDFC Life (+1.28%), and Hero MotoCorp (+1.24%).

The top losers were Bajaj Finance (-1.36%), ONGC (-1.33%), Infosys (-1.20%), Adani Ports (-1.08%), and HCL Technologies (-1.02%).

Top Gainers and Losers Sectors

The top gainers sector were Consumer Durables (+1.31%), Financial Services (+0.82%), and Pharma (+0.12%).

The top losers sector were Media (-1.44%), Metal (-0.56%), Realty (-0.52%), Oil & Gas (-0.52%), and IT (-0.29%).

SECTORS – NOTABLE ACTION
CONSUMER DURABLES +1.31%
FINANCIAL SERVICES +0.82%
PHARMA +0.12%
MEDIA -1.44%
METAL -0.52%
REALTY -0.52%

Stocks Ban List

(SEBI) F&O ban list (BALRAMCHIN close at -587.65), and (HINDCOPPER close at -318.50) 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.

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

Daily Pivots

As per the above pivots data, 25150 to 25400 is the Nifty 50 trading range.

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