Private Banks Fuel Market Revival to Approach All-Time Highs

At the close, the Nifty 50 was at 22,196.95 up by 0.34%

The NSE Nifty 50 commenced the day with a modest rise, ultimately closing in the green with a 0.34 percent gain, nearing the 22,200 mark. Notably, domestic benchmark indices recorded their sixth consecutive day of gains on February 20, with one index reaching fresh record highs. The surge was largely attributed to heavy buying in banks and financial services, particularly private sector banks, which propelled the Nifty to new heights.

Despite experiencing profit booking at higher levels, the index managed to sustain its upward momentum, closing near the day’s peak. Starting on a negative note, the Nifty50 index consolidated in the first half of the session, reaching its low point at 22,045.85. However, a significant upswing in the second half, particularly led by media, realty, and private sector banks, propelled the index to an all-time high of 22,215.60.

Looking ahead, Nifty is anticipated to target levels of 22,500, supported by the expansion of Bollinger bands and trading along the upper band, indicating a continuation of positive price action. However, caution persists among investors, particularly evident in the decline of mid and small-cap stocks, suggesting concerns regarding stretched valuations.

The upcoming release of the US Federal Reserve minutes holds significance amidst market volatility and recent sticky inflation data, which has cast uncertainty on the timing of the Federal Reserve’s easing cycle initiation. Investors remain vigilant, monitoring global economic indicators for potential impacts on market dynamics.

Bank Nifty: Up by 1.20%

The Bank Nifty commenced trading in the red but ultimately surged by 1.20 percent, closing in the green at 47,094.20. Similarly, the BSE Sensex witnessed a rise of 0.48 percent, culminating in a green close at a high of 73,057.40. The notable buoyancy in the banking sector, propelled by heavyweight institutions, has provided crucial momentum for the benchmark indices to maintain higher levels.

The sustained momentum in the banking space suggests a positive trend continuation, with the possibility of follow-up buying reinforcing this outlook. As the US market prepares to reopen after a prolonged weekend, monitoring its performance is advisable, as it may influence the intermediate trend setup for our markets.

In the sectorial front, the Media sector, witnessing a gain of 2.27%. Leading this charge is Zee Entertainment Enterprises Ltd., boasting an impressive increase of 6.67%, closely followed by TV18 Broadcast Ltd., which saw a gain of 4.97%. Conversely, the Information Technology (IT) sector faced challenges, emerging as the top loser with a decline of 0.87%. Within this sector, Tata Consultancy Services Ltd. experienced a notable setback, with a decrease of -1.68%, while Coforge Ltd. recorded a loss of -1.14%.

Foreign Institutional Investors (FIIs/FPIs) registered a net value of -1,335.51 crore rupees, with a buy value of 14,870.68 crore rupees and a sale value of 16,206.19 crore rupees. Conversely, Domestic Institutional Investors (DIIs) recorded a net value of 1,491.33 crore rupees, with a buy value of 10,665.07 crore rupees and a sale value of 9,173.74 crore rupees.

Bank Nifty

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

The gainers included HDFC Bank with a 2.53% increase, Axis Bank with a 2.27% increase, Kotak Bank with a 2.04% increase, IndusInd Bank with a 1.58% increase, and Bank of Baroda with a 1.03% increase. On the other hand, the biggest losers in the sector included Federal Bank with a 5.00% decline, Bandhan Bank with a 0.47% decline, IDFC First Bank with a 0.43% decline, and AU Bank with a 0.05% decline. These results suggest that some of the banking stocks performed better for the day.

Rupee Gains 6 Paise Against US Dollar Amidst Equity Market Optimism

On Tuesday, the Indian rupee showcased resilience, appreciating by 6 paise to settle at 82.95 (pro) against the US dollar. This positive movement was buoyed by robust sentiment in the equity market and a weakening trend in the American currency.

However, the rupee’s sharp gains were somewhat tempered by sustained outflows of foreign funds. Despite opening at 83.02 against the greenback at the interbank foreign exchange market, the local unit reached an intraday high of 82.91.

Ultimately, the rupee concluded at 82.95 (pro) against the dollar, marking a modest gain of 6 paise compared to its previous close. This follows a trend from the previous Friday, where the rupee settled 4 paise higher at 83.01 against the US dollar.

In global currency markets, the dollar index, which measures the greenback’s strength against a basket of six currencies, experienced a slight decline of 0.10%, resting at 104.07.

Furthermore, Brent crude futures, the benchmark for global oil prices, witnessed a decrease of 0.59%, reaching $83.07 per barrel. This movement may have additional implications for currency markets, as oil prices often influence investor sentiment and currency valuations.

Overall, the rupee’s performance against the US dollar reflects a complex interplay of domestic economic factors, global market dynamics, and geopolitical events, all of which continue to shape currency movements and investment strategies.

Stocks Highlights

Power Grid Corporation of India Ltd. (PGCIL) Sees Positive Momentum

Power Grid Corporation of India Ltd. witnessed a notable increase in share price, rising by 4.36% from its previous close of Rs 276.35 to Rs 288.40. Notably, in the last 16 years, only 1.03% of trading sessions recorded intraday gains exceeding 5%. Analysis of the company’s financials reveals that it allocated 21.14% of its operating revenues towards interest expenses and 5.5% towards employee costs in the fiscal year ending on March 31, 2023.

A bullish trend appears to be on the horizon as a 5-day moving crossover signal emerged recently. Historical data suggests an average price gain of 2.44% within 7 days following this signal over the past 5 years. However, investors should remain cautious as a sell signal has also surfaced, indicating a daily MACD crossover. On average, there has been a price decline of -2.89% within 10 days following this signal over the past decade, suggesting potential downside risk.

Hero MotoCorp Ltd. Faces Share Price Decline Amid Dividend Announcement

Conversely, Hero MotoCorp Ltd. experienced a downturn in share price, dropping by -3.85% from its previous close of Rs 4,852.60 to Rs 4,665.70. The company announced a dividend of Rs 75.0 per share on February 9, 2024, with a record date set for February 21, 2024.

Despite the share price decline, Hero MotoCorp Ltd. has shown robust revenue growth, surpassing its 3-year compound annual growth rate (CAGR) of 4.97% with an annual revenue growth of 15.35%. Financial analysis indicates that the company allocated less than 1% of its operating revenues towards interest expenses and 6.59% towards employee costs in the fiscal year ending on March 31, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 0.87, and the market breadth was negative. The volatility index India Vix increased by 0.34 percent to settle at 16.07 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1171
Decliners – 1340
52Wk High –  143
52Wk Low – 9
High Band Hitters – 145
Low Band Hitters – 47
200d SMA – 19908
50d SMA – 21615
20d SMA – 21759

Top Gainers and Losers Stocks

The top gainers were Power Grid (+4.36%), HDFC Bank (+2.53%), Axis Bank (+2.27%), NTPC (+2.14%), and Kotak Bank (+2.04%).

The top losers were Hero MotoCorp (-3.85%), Bajaj Auto (-2.58%), Eicher Motors (-1.87%), Coal India (-1.74%), and TCS (-1.68%).

Top Gainers and Losers Sector

The top gainers sector were Media (+2.27%), Financial Services (+1.23%), Realty (+1.16%), and Oil & Gas (+0.20%).

The top losers sector were IT (-0.87%), Auto (-0.62%), Metal (-0.32%), Consumer Durables (-0.29%), and Pharma (-0.23%).

SECTORS – NOTABLE ACTION
MEDIA +2.27%
FINANCIAL SERVICES +1.23%
REALTY +1.16%
IT -0.87%
AUTO -0.62%
METAL -0.32%

Stocks Ban List

(SEBI) F&O ban list (BIOCON open at -286.75 and close at -281.20), (INDUSTOWER open at +223.25 and close at -221.40), (NATIONALUM open at -162.00 and close at -160.25), (ZEEL open at +186.00 and close at +192.65), (HINDCOPPER open at -255.00 and close at -250.10), (CANBK open at -571.50 and close at -569.00), (BANDHANBNK open at +204.95 and close at -202.70), (INDIACEM open at -243.00 and close at +242.85), (ABFRL open at +236.00 and close at -235.20), (ASHOKLEY open at -172.65 and close at +172.95), and (SAIL open at +129.00 and close at +130.35) 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.

GNFC, GMRINFRA, RBLBANK, PVRINOX, PEL, VEDL, TATACHEM, PNB, AUROPHARMA, BHEL, and NMDC stocks has the possibilities of entrance in the ban list.

INDIACEM, ABFRL, ASHOKLEY, and SAIL stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 22000 to 22300 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Soars in 5th Straight Session, Sets New All-Time High
Stock Market Soars 4th Consecutive Day of Gains with Nifty Above 22,000
Nifty 50 Extends Winning Streak Amidst Volatility

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