Profit Booking Caps Market Rally, Benchmark Indices Retreat

At the close, the Nifty 50 was at 19,749.25 up by 0.19%

Today, the NSE Nifty 50 commenced on a positive note, soaring to a higher level and experiencing a 0.19 percent increase. The market concluded on a positive note, closing in the green zone. The Nifty index approached the significant level of 19,750, reinforcing its bullish momentum.

The current global market landscape remains highly favorable, driven by the declining dollar and the resulting capital inflows into emerging markets, which can enhance market resilience. However, it’s important to consider that elevated valuations and potential profit-booking activities may act as restraining factors for the ongoing rally. As we look ahead, a robust consolidation phase may shape the near-term trend.

Foreign Institutional Investors (FII)/Foreign Portfolio Investors (FPI) made purchases worth Rs. 11,070.61 Cr. and sales worth Rs. 8,954.77 Cr., resulting in a net value of Rs. 2,115.84 Cr. On the other hand, Domestic Institutional Investors (DII) made purchases worth Rs. 6,778.40 Cr. and sales worth Rs. 8,095.96 Cr., resulting in a net value of -Rs. 1,317.56 Cr.

Bank Nifty: Down by 0.09%

In a positive start, the Bank Nifty embarked on the trading session in the green zone but faced a slight downturn, witnessing a decrease of 0.09 percent. Ultimately, the market closed in the red, with the Bank Nifty settling at 45,410.85. In a similar vein, the BSE Sensex displayed resilience, exhibiting a growth of 0.31 percent. It concluded the day on a positive note, reaching a high of 66,795.14, further solidifying its upward trajectory.

The market is experiencing a surge in Foreign Institutional Investor (FII) inflows, acting as a significant catalyst for the upward movement in benchmark indices. Despite the possibility of the market being in an overbought zone, the overall sentiment remains positive, supported by India’s robust economic performance and optimistic expectations of the US rate hike cycle approaching its conclusion amidst a moderation in inflationary pressures.

In the sectorial analysis, the IT sector emerged as the top gainer with a significant increase of 1.06%. Within this sector, Infosys Limited witnessed a gain of 3.73%, while HCL Technologies Limited recorded a gain of 1.00%. On the other hand, the Media sector experienced a decline of 1.84%. Notably, Dish TV India Limited witnessed a substantial loss of -5.82%, while Hathway Cable & Datacom Limited recorded a decline of -4.73%.

Bank Nifty

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

The gainers included Federal Bank with a 1.77% increase, ICICI Bank with a 0.75% increase, and AU Bank with a 0.33% increase. On the other hand, the biggest losers in the sector included Bank of Baroda with a 1.74% decline, State Bank of India with a 1.43% decline, Punjab National Bank with a 0.96% decline, IDFC First Bank with a 0.61% decline, and Kotak Bank with a 0.37% decline. These results suggest that some banking stocks not performed better for the day.

Buzz

On Tuesday, the Indian rupee maintained a tight trading range and settled flat at 82.03 against the US dollar. Despite receiving support from positive domestic equities and a weakened American currency, the impact was offset by the escalation in crude oil prices.

Forex traders noted that market participants adopted a cautious stance in anticipation of upcoming retail sales data from the US and inflation figures from the UK later in the week.

At the interbank foreign exchange market, the rupee initiated trading at 82.01 against the US dollar and concluded the session at an unchanged rate of 82.03, mirroring its previous close.

Throughout the session, the domestic currency experienced an intra-day high of 81.97 and a low of 82.07.

The prevalence of risk-averse sentiment in global markets and apprehensions regarding a potential global economic slowdown could restrain notable upward movements. Market participants are expected to exercise caution ahead of crucial data releases, such as retail sales and industrial production capacity utilization rate data from the US.

Buzzing

Infosys Ltd. witnessed a notable increase in its share price, rising by 3.73% from its previous closing value of Rs 1,422.95. The last traded price of Infosys Ltd. stock stands at Rs 1,476.00. Notably, the company’s annual revenue growth of 20.6% has outperformed its 3-year Compound Annual Growth Rate (CAGR) of 16.7%. Over a 3-year period, the stock has delivered a return of 57.55%, while the Nifty 100 index registered a return of 76.12%.

LTIMindtree Ltd. observed a decline in its share price, dropping by -2.63% from its previous closing value of Rs 5,134.85. The last traded price of LTIMindtree Ltd. stock stands at Rs 5,000.00. Notably, the stock has delivered a 3-year return of 126.8%, outperforming the return of 76.12% registered by the Nifty 100 index. Furthermore, the company’s annual revenue growth of 109.1% has exceeded its 3-year Compound Annual Growth Rate (CAGR) of 43.86%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.05, and the market breadth was positive. The volatility index India Vix increased by 3.49 percent to settle at 11.71 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 5432
Decliners – 5191
52Wk High –  140
52Wk Low – 19
High Band Hitters – 61
Low Band Hitters – 52
200d SMA – 18060
50d SMA – 18775
20d SMA – 19217

Top Gainers and Losers Stocks

The top gainers were Infosys (+3.73%), Asian Paint (+1.56%), HCL Technologies (+1.00%), Reliance (+0.93%), and Hero MotoCorp (+0.82%).

The top losers were LTIM (-2.63%), HDFC Life (-1.54%), SBIN (-1.43%), Britannia (-1.41%), and Titan (-1.34%).

Top Gainers and Losers Sector

The top gainers sectors were IT (+1.06%), and Oil & Gas (+0.17%).

The top losers sectors were Media (-1.84%), Realty (-0.85%), Metal (-0.83%), Pharma (-0.26%) and FMCG (-0.24%).

The Nifty Midcap 50 was down by 0.05 percent, while the Nifty Small Cap 50 was down by 1.23 percent on the day.

The Nifty Midcap 50 index currently closed at 10,368.60, while the Nifty Small Cap 50 index currently closed at 5,114.70.

SECTORS – NOTABLE ACTION
IT +1.06%
OIL & GAS +0.17%
MEDIA -1.84%
REALTY -0.85%
METAL -0.83%

Stocks Ban List

(SEBI) F&O ban list  (DELTACORP open at +189.00 and close at +191.15), (RBLBANK open at +225.50 and close at -219.05), (IBULHSGFIN open at +123.75 and close at -121.25), and (MANAPPURAM open at -128.50 and close at -127.95) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned DELTACORP, RBLBANK, IBULHSGFIN, and MANAPPURAM from trading in the futures and options (F&O) segment of 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.

INDIACEM, ZEEL, L&TFH, BHEL, BALRAMCHIN, GNFC, SAIL, LICHSGFIN, TATACHEM, and INDUSTOWER are stock that are potentially facing the possibility of being included in the ban list.

Daily Pivots

As per the above pivots data, 19680 to 19830 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Soars Past 19,700 Unprecedented Rally Unfolds!
Nifty Surpasses 19,550 Market Achieves Fresh Record High
Fresh Lifetime Highs for Indian Equity Indices Despite Domestic Inflation Concerns
Indian Shares Swing Amid Caution Ahead of Key Earnings and Inflation Data

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