Rollercoaster Ride Weekly F&O Expiry Sends Benchmark Indices Swinging

At the close, the Nifty 50 was at 21,647.20 up by 0.13%

In the dynamic landscape of today’s stock market, the NSE Nifty 50 exhibited a positive start, opening with a 0.13% gain and ultimately closing with marginal increases, lingering around the 21,650 level. Traders exercised caution amid volatile trade, directing their attention towards impending December quarter earnings and eagerly anticipating the release of US inflation data. The market initially rode on positive global cues, maintaining an upward trajectory in the first half, though faced a brief dip into the red zone due to selling pressure, ultimately recovering with slight gains.

The market’s oscillation reflected the prevailing uncertainty regarding the forthcoming US inflation data, as investors closely monitored its potential implications on global markets and speculated about a potential rate cut in CY24. Profit booking took center stage amidst moderated Q3 corporate earnings and concerns regarding premium valuations, particularly in the IT sector. IT stocks, in particular, witnessed subdued performance ahead of the results from industry leaders, with heightened attention on forecasts amid expectations of restrained results due to weakened spending by key US clients.

The market’s attention is now firmly fixed on the impending results from Infosys and TCS, contributing significantly to the observed volatility in the final trading hour. Simultaneously, investors are keenly tracking the US inflation data, as a softer reading could bolster expectations for a rate cut in March, rendering equities, especially in the IT sector, more attractive in the eyes of discerning investors. As the market navigates through these intricacies, the synergy of global events and corporate performances will continue to shape its trajectory.

Bank Nifty: Up by 0.16%

The Bank Nifty commenced the day on a positive note, opening in the green and notching a modest uptick of 0.16%. The day concluded with the Bank Nifty maintaining its positive trajectory, closing at 47,438.35, offering a reassuring signal of stability for investors in the banking sector.

Simultaneously, the BSE Sensex mirrored this positive trend, marking a marginal increase of 0.09%. The day’s trading activities culminated with the BSE Sensex closing in the green at a notable high of 71,721.18, contributing to the overall optimistic sentiment prevailing in the financial markets.

In the sectorial landscape, the Oil & Gas sector experienced a significant upswing, posting a noteworthy gain of 1.48%. Gujarat Gas Ltd. emerged as a frontrunner within this sector, witnessing an impressive surge of 5.58%, closely followed by Mahanagar Gas Ltd. with a commendable 5.46% increase in stock value. Conversely, the Media sector found itself in a contrasting position, undergoing a dip of 0.35%. Zee Entertainment Enterprises Ltd. faced a downturn, recording a substantial loss of -3.44%, while D.B.Corp Ltd. observed a decline of -1.68%.

Foreign Institutional Investors (FIIs/FPIs) engaged in transactions with a buy value of Rs. 11,619.68 crore and a sale value of Rs. 12,484.68 crore, resulting in a net value of -Rs. 865.00 crore. In contrast, Domestic Institutional Investors (DIIs) displayed robust activity, with a buy value of Rs. 12,951.47 crore and a sale value of Rs. 11,344.39 crore, yielding a positive net value of Rs. 1,607.08 crore. This intricate interplay of market dynamics reflects the nuanced movements within the financial landscape.

Bank Nifty

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

The gainers included IDFC First Bank with a 3.22% increase, Axis Bank with a 1.63% increase, IndusInd Bank with a 1.27% increase, Bank of Baroda with a 0.96% increase, and AU Bank with a 0.78% increase. On the other hand, the biggest losers in the sector included Federal Bank with a 0.96% decline, HDFC Bank with a 0.40% decline, ICICI Bank with a 0.27% decline, and State Bank of India with a 0.08% decline. These results suggest that some of the banking stocks performed better for the day.

Rupee Resilience Gains Against US Dollar Amid Global Factors

The Indian rupee showcased remarkable stability for the seventh consecutive session, strengthening by 2 paise to 83.01 against the US dollar in early Thursday trade. This gain was propelled by a weakened American currency and a decline in crude oil prices, creating a favorable environment for the domestic currency.

Contributing to the rupee’s resilience was sustained buying in the domestic equity markets, further bolstering investor confidence despite the anticipation of key US inflation data set to be released later in the day. The interbank foreign exchange initially saw the rupee open at 83.05, briefly slipping to 83.06 before settling at 83.01, marking a 2-paise gain from the previous day’s close at 83.03.

While the US dollar index showed a marginal decrease of 0.09%, trading at 101.98, Brent crude futures, a significant global oil benchmark, experienced a modest uptick of 0.33%, reaching $77.05 per barrel. As global economic variables continue to influence currency movements, the rupee’s steadfast performance reflects its resilience in the face of external pressures, providing a positive outlook for investors and market participants alike.

Stocks Highlights

Hero MotoCorp Ltd. demonstrated a robust performance, with its share price surging by 4.64% to reach Rs 4,330.00 from the previous close of Rs 4,138.05. Notably, a recent 5-day moving average crossover on January 09, 2024, signaled a bullish trend, historically resulting in an average price gain of 2.53% within 7 days. The company’s financials further strengthened its position, with an impressive 3-year revenue CAGR of 15.35%, outperforming the 4.97% average. Remarkably, only 1.38% of the last 19 years’ trading sessions witnessed intraday gains higher than 5%.

In contrast, Dr. Reddy’s Laboratories Ltd. experienced a -1.54% decline in its share price, falling from Rs 5,787.20 to Rs 5,698.00. Despite this, the company exhibited strong fundamentals, surpassing its 5-year average ROE with a remarkable 19.35%. Dr. Reddy’s revenue growth of 16.78% outpaced its 3-year CAGR of 12.22%. A recent 14-day moving average crossover signaled a positive trajectory, historically resulting in an average price gain of 2.48% within 7 days. Both Hero MotoCorp and Dr. Reddy’s Laboratories present intriguing opportunities for investors, each backed by distinct strengths and market signals.

Advance Decline Ratio

Today, the advance-decline ratio was 1.52, and the market breadth was positive. The volatility index India Vix decreased by 1.07 percent to settle at 12.83 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1501
Decliners – 988
52Wk High –  250
52Wk Low – 7
High Band Hitters – 145
Low Band Hitters – 55
200d SMA – 19340
50d SMA – 20581
20d SMA – 21525

Top Gainers and Losers Stocks

The top gainers were Hero MotoCorp (+4.64%), Bajaj Auto (+3.42%), Reliance (+2.49%), BPCL (+1.63%), and Axis Bank (+1.63%).

The top losers were Hindustan Unilever (-1.58%), Dr. Reddy (-1.54%), SBI Life (-1.48%), Wipro (-1.11%), and Larsen & Toubro (-1.09%).

Top Gainers and Losers Sector

The top gainers sector were Oil & Gas (+1.48%), Consumer Durables (+1.18%), Auto (+1.06%), and Financial Services (+0.12%).

The top losers sector were Media (-0.35%), IT (-0.28%), FMCG (-0.21%), Pharma (-0.12%), and Metal (-0.08%)

SECTORS – NOTABLE ACTION
OIL & GAS +1.48%
CONSUMER DURABLES +1.18%
AUTO +1.06%
MEDIA -0.35%
IT -0.28%
FMCG -0.21%

Stocks Ban List

(SEBI) F&O ban list (ZEEL open at +261.00 and close at -251.15), (HINDCOPPER open at +271.00 and close at -265.95), (PVRINOX open at +1565.90 and close at -1526.45), (INDUSTOWER open at -214.95 and close at +214.65), (BANDHANBNK open at -232.90 and close at +232.80), (ESCORTS open at +2840.00 and close at +2862.85), (INDIACEM open at +260.00 and close at -257.70), (PEL open at +925.00 and close at +940.10), (NATIONALUM open at +131.10 and close at -130.40), (SAIL open at +115.95 and close at -113.50), (CHAMBLFERT open at -376.50 and close at +380.20), (IEX open at +165.70 and close at +166.90), and (BALRAMCHIN open at -391.00 and close at +394.40) 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.

BHEL, BIOCON, ABFRL, ASHOKLEY, UPL, RBLBANK, and IRCTC stocks has the possibilities of entrance in the ban list.

NATIONALUM, SAIL, CHAMBLFERT, IEX, and BALRAMCHIN stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 21550 to 21750 is the Nifty 50 trading range.

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