Nifty’s Winning Streak in Peril: The 25,000 Dream Crumbles!

At the close, the Nifty 50 was at 24,836.10 up by 0.01%

On July 29, the NSE Nifty 50 embarked on a promising start, advancing by 0.01% and closing above 24,800. The index achieved fresh record highs, driven by robust earnings in the banking sector. However, a volatile session saw benchmarks rise to new peaks before investors opted to secure profits, leading to a marginal end-of-day gain of 1.25 points, settling at 24,836.10.

Indian markets opened the week at a historic 24,940, with banking stocks initially pushing the index toward the significant 25,000 mark. Despite reaching an intraday high of 24,999.75, profit-taking and a bearish divergence in the RSI caused the Nifty 50 to retreat slightly. The index finished nearly flat, facing a potential consolidation phase as it hovers near key support levels.

Looking forward, the Nifty 50’s ability to sustain above 24,600 could pave the way for a breakthrough past 25,000. Meanwhile, global developments, including anticipated policy decisions from the US Fed, BOJ, and BOE, could influence market trends. Will the Nifty 50 navigate through this consolidation phase and make a decisive move towards new highs? The upcoming weeks will be crucial in determining its trajectory.

Bank Nifty: Up by 0.22%

The Bank Nifty kicked off the trading day with a modest gain of 0.22%, ultimately closing at 51,406.25. This uptick reflects a positive sentiment in the banking sector, bolstered by strong earnings reports and market optimism.

The BSE Sensex also displayed a positive trend, edging up by 0.03% to finish at a record high of 81,355.84. Both indices mirrored the broader market’s green streak, which was fueled by a combination of strong global cues and robust domestic performance.

In the sectorial front, Media stocks stole the show, with a collective surge of 1.80%. Leading the charge were TV18 Broadcast Ltd., which skyrocketed by a remarkable 7.45%, and Sun TV Network Ltd., which climbed a solid 4.65%.

In stark contrast, the IT sector faced a downturn, shedding 0.38%. Mphasis Ltd. bore the brunt of the decline, plunging by 3.29%, while Tech Mahindra Ltd. saw a more modest loss of 0.92%.

Foreign Institutional Investors (FIIs) reported a buy value of Rs. 17,371.87 crore and a sale value of Rs. 19,846.41 crore, resulting in a net outflow of Rs. 2,474.54 crore.

Domestic Institutional Investors (DIIs) exhibited a more bullish stance, with a buy value of Rs. 18,993.38 crore and a sale value of Rs. 13,327.84 crore, leading to a net inflow of Rs. 5,665.54 crore.

Bank Nifty

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

The gainers included Bandhan Bank with a 13.51% increase, Punjab National Bank with a 5.81% increase, Bank of Baroda with a 2.62% increase, Federal Bank with a 1.41% increase, and State Bank of India with a 0.99% increase.

On the other hand, the biggest losers in the sector included Kotak Bank with a 1.06% decline, HDFC Bank with a 0.81% decline, Axis Bank with a 0.69% decline. These results suggest that most of the banking stocks performed better for the day.

Gold and Silver

Stocks Highlights

Divi’s Laboratories Ltd. has seen a notable uptick of 2.93% in its share price, climbing from Rs 4,790.60 to Rs 4,931.00. This movement follows a recent dividend announcement of Rs 30.0 per share, scheduled with a record date of August 2, 2024.

Interestingly, the company maintains a frugal approach to expenses, with less than 1% of its operating revenue dedicated to interest and 13.95% allocated to employee costs for the year ending March 31, 2024. However, its 3-year stock return has been less favorable, with a decline of -2.04% compared to the Nifty 100’s robust 61.67% gain.

On the flip side, Bharti Airtel Ltd. experienced a decline of -2.08%, moving from Rs 1,514.40 to Rs 1,482.85. Despite this dip, the company reported its lowest QoQ revenue decline in the past three years at 1.1%. Notably, Bharti Airtel has delivered a striking 166.67% return over three years, significantly outperforming the Nifty 100’s 61.67% return.

Advance Decline Ratio

Today, the advance-decline ratio was 1.36, and the market breadth was positive. The volatility index India Vix increased by 5.69 to settle at 12.95 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1552
Decliners – 1145
52Wk High – 245
52Wk Low – 16
High Band Hitters – 179
Low Band Hitters – 63
200d SMA – 21892
50d SMA – 23649
20d SMA – 24454

Top Gainers and Losers Stocks

The top gainers were Divi’s Laboratories (+2.93%), BPCL (+2.92%), Larsen & Toubro (+2.58%), Bajaj Finserv (+1.99%), and M&M (+1.98%).

The top losers were Bharti Airtel (-2.08%), Titan (-1.95%), Cipla (-1.40%), ITC (-1.18%), and Tata Consumer (-1.12%).

Top Gainers and Losers Sectors

The top gainers sector were Media (+1.80%), Realty (+1.43%), Oil & Gas (+1.04%), Auto (+0.67%), and Pharma (+0.33%).

The top losers sector were IT (-0.38%), FMCG (-0.34%), Financial Services (-0.01%), Consumer Durables (-0.01%).

SECTORS – NOTABLE ACTION
MEDIA +1.80%
REALTY +1.43%
OIL & GAS +1.04%
IT -0.38%
FMCG-0.34%
FINANCIAL SERVICES -0.01%

Stocks Ban List

The Securities and Exchange Board of India (SEBI) has not included any stocks in the F&O ban list today.

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.

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

Daily Pivots

As per the above pivots data, 24650 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.