Resilient Nifty Defies Global Cues, Short-Covering Boosts

At the close, the Nifty 50 was at 18,817.40 up by 0.68%

Nifty 50 index on the National Stock Exchange (NSE) commenced the trading session on a bullish note, opening at a higher level. Throughout the day, it displayed positive momentum, surging by an impressive 0.68 percent. Finally, as the trading session drew to a close, the Nifty 50 continued its upward trajectory, concluding in the green zone. Notably, the index surpassed the significant psychological level of 18800, reflecting strong market sentiment and optimism among investors.

Despite a lackluster trend observed in Asian and European indices, a sharp rebound in key benchmark indices was triggered by the expiry of futures and options (F&O). This resurgence reflects investors’ continued confidence in India’s strong economic fundamentals, as they strategically gravitated towards banking and realty shares. In a remarkable display of resilience, market participants shrugged off negative catalysts such as the hawkish stance of the Federal Reserve, mounting concerns surrounding Chinese growth, and the ongoing Russian crisis.

Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) recorded a total buy value of Rs. 10,452.72 crore, while the sale value amounted to Rs. 8,428.67 crore. Consequently, the net value stood at Rs. 2,024.05 crore. Conversely, Domestic Institutional Investors (DII) reported a buy value of Rs. 6,784.35 crore and a sale value of Rs. 8,775.70 crore on the same date. As a result, the net value for DII amounted to -Rs. 1,991.35 crore.

Bank Nifty: Up by 1.10%

Bank Nifty exhibited a positive start to the trading session, opening in the green and experiencing a significant increase of 1.10 percent. As the day progressed, the index continued to display strength and concluded in the green, settling at a final value of 44,121.50. Likewise, the BSE Sensex also witnessed upward movement, recording a gain of 0.71 percent and closing at a notable high of 63,416.03.

Among the sectors, Financial Services emerged as the top gainer, with a notable increase of 1.37%. Within this sector, HDFC life insurance company limited witnessed a significant gain of 5.50%, followed by Power Finance Corporation limited with a gain of 3.98%, and ICICI lombard general insurance company limited with a gain of 3.08%. On the other hand, FMCG experienced a marginal decline of 0.07%. Notably, within this sector, Britannia industries limited recorded a loss of -1.06%, and Tata Consumer Products limited saw a decline of -1.00%.

Bank Nifty

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

The gainers included State Bank of India with a 1.84% increase, Federal Bank with a 1.81% increase, Axis Bank with a 1.40% increase, HDFC Bank with a 1.39% increase, and ICICI Bank with a 1.30% increase. On the other hand, the biggest losers in the sector included IndusInd Bank with a 0.09% decline. These results suggest that some banking stocks performed better for the day.

Buzz

The long-awaited merger between HDFC Ltd, a leading mortgage player, and HDFC Bank, the largest private sector bank, is set to materialize. The merger would leverage HDFC Bank’s diverse retail and wholesale banking products with HDFC Ltd’s specialization in home loans, creating a formidable housing loan portfolio within the banking platform. Currently, HDFC Bank earns a fee by selling HDFC Ltd’s home loans, but the merger would allow HDFC Bank to independently build its housing loan portfolio and expand its customer base, solidifying its market position.

In a relatively quiet trading session, the Indian rupee strengthened by 1 paisa to settle at 82.03 (pro) against the US dollar. This modest gain was primarily attributed to a weaker US dollar in international markets and a concurrent upswing in domestic equities, which provided support to the rupee.

The Indian rupee faced limited gains as concerns surrounding potential interest rate hikes in the US and geopolitical uncertainties weighed on the local unit. However, the rupee found some support from a weakened US currency in the global markets and a decline in crude oil prices. These factors helped to mitigate the downward pressure on the rupee and contributed to its relative stability.

Buzzing

HDFC Life Insurance Company Ltd. experienced a significant 5.50% increase in its share price, reaching Rs 664.90 from its previous close of Rs 630.25. Over a 3-year period, the stock delivered a respectable return of 16.3%, while the Nifty 100 index saw a return of 75.91% during the same timeframe. Additionally, a weekly stochastic crossover took place in the week ending June 23, 2023, suggesting a potential trend reversal. Based on historical data, there has been an average price gain of 6.59% within 7 weeks following this signal over the past 10 years.

Cipla Ltd. saw its share price decrease by -1.07% to Rs 1,011.00 from the previous close of Rs 1,021.90. The stock has delivered an impressive 3-year return of 60.95%, surpassing the performance of the Nifty Pharma index, which returned 30.07% during the same period. Additionally, Cipla Ltd. outperformed the Nifty 100 index’s return of 75.91% with its own return of 60.95%. The company also announced a dividend of Rs 8.5 per share on May 12, 2023, with a record date of July 21, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 1.50, and the market breadth was positive. The volatility index India Vix decreased by 5.41 percent to settle at 10.78 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1382
Decliners – 923
52Wk High –  77
52Wk Low – 12
High Band Hitters – 73
Low Band Hitters – 30
200d SMA – 17941
50d SMA – 18354
20d SMA – 18682

Top Gainers and Losers Stocks

The top gainers were HDFC Life (+5.50%), Apollo Hospital (+2.15%), SBIN (+1.84%), JSW Steel (+1.80%), and SBI Life (+1.67%).

The top losers were Cipla (-1.07%), Britannia (-1.06%), Tata Consumer (-1.00%), Adani Ports (-0.79%), and UPL (-0.75%).

Top Gainers and Losers Sector

The top gainers sectors were Financial Services (+1.37%), Realty (+1.24%), IT (+0.73%), Metal (+0.73%), and Media (+0.64%).

The top losers sectors were FMCG (-0.07%) and Oil & Gas (-0.01%) .

The Nifty Midcap 50 was up by 0.62 percent, while the Nifty Small Cap 50 was up by 0.83 percent on the day.

The Nifty Midcap 50 index currently closed at 9,945.10, while the Nifty Small Cap 50 index currently closed at 4,836.30.

SECTORS – NOTABLE ACTION
FINANCIAL SERVICES +1.37%
REALTY +1.24%
IT +0.73%
FMCG -0.07%
OIL & GAS -0.01%

Stocks Ban List

(SEBI) F&O ban list  (RBLBANK open at -166.50 and close at +174.20), and (HINDCOPPER open at +116.45 and close at -115.30) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned RBLBANK, and HINDCOPPER, 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.
BALRAMCHIN, ZEEL, MANAPPURAM, IBULHSGFIN, INDIACEM, PEL, GNFC, IDFC, and SUNTV are stocks that are potentially facing the possibility of being included in the ban list.

HINDCOPPER has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 18740 to 18870 is the Nifty 50 trading range.

Read previous -Daily Insights- here
What is Cross-Chain Interoperability & why should traders worry about it?
Global Market Bears Witness to Growth Concerns Amidst Russian Instability
Nifty Extends Decline on Negative Global Cues
Heightened Volatility as Domestic Market Reaches Historical Peaks

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