Quiet Start EXPLODES! Indian Markets Surge on Mystery Boost (Who’s Buying?)

At the close, the Nifty 50 was at 24,141.95 up by 0.55%

The NSE Nifty 50 displayed a resilient performance today, starting with a gap down but ultimately closing in the green, up by 0.55% to settle above the 24,100 mark. Monday saw the formation of an Inside Bar candle on the daily chart, indicating consolidation after a previous high, with a positive chart pattern of higher tops and bottoms intact. This suggests a continued positive trend for the index.

Today’s rebound followed a minor correction, culminating in a fresh closing high on July 1. Momentum indicators such as the RSI and MACD reinforce the bullish sentiment, pointing towards potential targets of 24,400-24,500. Crucial support remains at 23,800, underscoring the index’s robust performance amidst market fluctuations.

Opening at 23,993 and touching an intraday high of 24,164, the Nifty 50 benefited from strong performances in technology and banking sectors, closing at 24,142. This upward movement formed a bullish candlestick pattern, nullifying previous negative sentiment and indicating short-term resilience.

Amidst range-bound action, consistent buying interest on dips signals bullish control, with midcap and smallcap segments also showing renewed strength. Optimism fueled by reduced US PCE inflation suggests potential Fed rate cuts in September, boosting IT stocks and discretionary spending expectations. Attention now turns to US job data and the Fed Chair’s upcoming speech for further market cues.

What factors are contributing to the NSE Nifty 50’s bullish momentum despite global economic uncertainties?

Strong technical signals, resilient sectoral performances in technology and banking, and anticipated rate cuts by the Fed following reduced US PCE inflation are key drivers. These factors collectively support the market’s upward trajectory amidst evolving economic conditions.

Bank Nifty: Up by 0.44%

Today’s trading session witnessed mixed results across major indices, with the Bank Nifty opening in the red but managing to close with a modest gain of 0.44%, settling at 52,574.75. Similarly, the BSE Sensex displayed resilience, starting strong with a 0.56% increase and closing in the green at a high of 79,476.19.

The stock market saw some interesting sectoral movements today. The media sector emerged as the big winner, surging by 2.42%. Leading the pack within this sector was Tips Industries Ltd., whose stock price jumped an impressive 7.27%. PVR Inox Ltd. also showed strong gains, climbing 4.88%.

On the other hand, the realty sector took a hit, ending the day as the top loser with a decline of 0.33%. Prestige Estates Projects Ltd. was the biggest loser in this sector, with its stock price falling by 2.91%. Sobha Ltd. also suffered losses, with its stock price dropping by 2.64%.

Foreign Institutional Investors (FII) involvement in Indian markets is characterized by their substantial financial clout and strategic investments. As per recent data, FIIs recorded a buy value of Rs. 13,206.44 crore, contrasting with a sale value of Rs. 13,632.47 crore, resulting in a net outflow of Rs. 426.03 crore.

Domestic Institutional Investors (DII) represent local entities investing in the stock market. Recent figures illustrate DIIs’ robust participation, with a buy value of Rs. 16,210.07 crore against a sale value of Rs. 12,292.64 crore, reflecting a substantial net investment of Rs. 3,917.43 crore.

Bank Nifty

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

The gainers included HDFC Bank with a 1.21% increase, Bandhan Bank with a 1.14% increase, ICICI Bank with a 0.70% increase, AU Bank with a 0.41% increase, and Federal Bank with a 0.33% increase.

On the other hand, the biggest losers in the sector included IDFC First Bank with a 1.23% decline, Bank of Baroda with a 1.22% decline, State Bank of India with a 0.72% decline, Punjab National Bank with a 0.62% decline, and IndusInd Bank with a 0.55% decline. These results suggest that some of the banking stocks performed better for the day.

Gold and Silver

Today 22 Carat Gold Price Per Gram in India (INR)

Today 24 Carat Gold Price Per Gram in India (INR)

Today Silver Price 1 Gram/KG in India (INR)

Rupee Depreciates Amid Rising Crude Oil Prices

The Indian rupee faced downward pressure against the US dollar, closing at 83.45 (pro) on Monday, marking a decline of 11 paise. This depreciation was primarily driven by escalating crude oil costs in global markets, which heightened concerns over India’s import bill. Despite this, several factors contributed to mitigating a steeper fall.

Amidst the rupee’s decline, domestic equity markets exhibited robust performance, buoyed by optimistic investor sentiment. Additionally, encouraging manufacturing Purchasing Managers’ Index (PMI) figures bolstered economic outlooks, providing crucial support to the rupee against the dollar.

Starting the day at 83.39, the rupee fluctuated within a range of 83.38 to 83.47 during trading sessions. Ultimately, it settled at 83.45 against the dollar, registering a modest decline from its previous close of 83.34 on Friday.

Factors such as surging US treasury yields and elevated crude oil prices posed challenges to Asian currencies, including the rupee. However, positive domestic market trends and anticipated foreign investments are expected to sustain the rupee with a slight upward bias in upcoming sessions.

Internationally, the US dollar index reflected weakness, trading lower at 105.24, down by 0.28%. Concurrently, Brent crude futures, a key global oil benchmark, saw a modest uptick to USD 85.35 per barrel, underpinning ongoing market volatility.

Stocks Highlights

Tech Mahindra Ltd. saw its share price increase by 2.98%, moving from Rs 1,430.35 to Rs 1,473.00. However, the company experienced a topline contraction, with sales declining by 2.47%, marking its first revenue dip in three years. Despite this, Tech Mahindra delivered a three-year return of 35.93%, which is lower than the Nifty 100’s return of 52.57%. In terms of expenses, the company allocated less than 1% of its operating revenues to interest expenses and 56.02% to employee costs for the year ending March 31, 2024.

In contrast, NTPC Ltd. saw a share price decline of 2.06%, from Rs 378.35 to Rs 370.55. The company spent 6.75% of its operating revenues on interest expenses and 3.69% on employee costs for the year ending March 31, 2024. Notably, NTPC issued a buy signal for bullish investors, with a weekly stochastic crossover on June 28, 2024, historically leading to an average price gain of 6.89% within seven weeks. Over the past three years, NTPC delivered an impressive return of 220.36%, significantly outperforming the Nifty 100’s 52.57% return.

Advance Decline Ratio

Today, the advance-decline ratio was 2.41, and the market breadth was positive. The volatility index India Vix increased by 0.21 to settle at 13.83 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1913
Decliners – 793
52Wk High – 209
52Wk Low – 18
High Band Hitters – 186
Low Band Hitters – 69
200d SMA – 21448
50d SMA – 22834
20d SMA – 23403

Top Gainers and Losers Stocks

The top gainers were Tech Mahindra (+2.98%), Wipro (+2.40%), Bajaj Finance (+2.06%), Grasim (+2.04%), and Ultra Cement (+1.99%).

The top losers were NTPC (-2.06%), Eicher Motors (-0.92%), Apollo Hospitals (-0.82%), SBIN (-0.72%), and Dr. Reddy (-0.66%).

Top Gainers and Losers Sectors

The top gainers sector were Media (+2.42%), IT (+1.97%), Financial Services (+0.90%), Consumer Durables (+0.80%), and FMCG (+0.70%).

The top losers sector were Realty (-0.33%).

SECTORS – NOTABLE ACTION
MEDIA +2.42%
IT +1.97%
FINANCIAL SERVICES +0.90%
REALTY -0.33%

Stocks Ban List

(SEBI) F&O ban list (INDIACEM open at +291.00 and close at -283.00), and (INDUSTOWER open at +377.00 and close at +389.65) 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.

Daily Pivots

As per the above pivots data, 23900 to 24300 is the Nifty 50 trading range.

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