Stock Market Soars 4th Consecutive Day of Gains with Nifty Above 22,000

At the close, the Nifty 50 was at 22,040.70 up by 0.59%

The NSE Nifty 50 index kicked off today’s trading session on a positive note, boasting a gain of 0.59% and maintaining its upward trajectory throughout. This uptrend saw the index surpass the significant 22,000 mark, marking a notable milestone in the market’s journey. Noteworthy sectors driving this surge include auto, pharma, and Information Technology, all contributing to the prevailing bullish sentiment.

Global cues played a pivotal role in influencing the positive momentum witnessed in the Indian equity market, with Asian counterparts also witnessing gains. Despite minor setbacks in sectors like oil & gas and power, overall market sentiment remained buoyant.

The session concluded with the Nifty index recording a gain of 129.95 points or 0.59%, reaching 22,040.70. This upward movement is indicative of sustained domestic buying, further buoyed by encouraging economic indicators from the United States, suggesting stabilization.

Furthermore, heightened buying interest, particularly in large-cap stocks, propelled the Nifty index above recent consolidation levels, resulting in a record-breaking weekly close. The consistent closure above the 21-day Exponential Moving Average (EMA) signals a positive trend, complemented by a bullish crossover in the Relative Strength Index (RSI), indicating favorable conditions for market participants.

Bank Nifty: Up by 0.36%

The Bank Nifty commenced trading on a positive note, opening in the green and witnessing a rise of 0.36% before closing at 46,384.85, reflecting sustained upward movement. Similarly, the BSE Sensex surged by 0.52%, closing at a high of 72,426.64, further indicating the prevailing bullish sentiment in the market.

Throughout the trading session, the bulls retained their dominance, driving positive momentum across both indices. Despite encountering minor obstacles around the immediate hurdle of 46,700 for the Bank Nifty, the overall market sentiment remained bullish.

In the sectorial front, the automotive industry experienced notable gains, with a 2.21% increase in the sector. Tube Investments Of India Ltd. surged impressively by 6.38%, showcasing robust performance. Similarly, Mahindra & Mahindra Ltd. recorded a substantial growth of 4.13%, indicating positive market sentiment within the sector. Conversely, the Oil & Gas sector saw a slight downturn, registering a decline of 0.61%. Gujarat Gas Ltd. faced a significant setback, experiencing a loss of -6.34%. Hindustan Petroleum Corporation Ltd. also recorded a decline, with losses amounting to -1.84%.

Foreign Institutional Investors (FII/FPI) displayed a strong buying sentiment, with a buy value of Rs. 13,802.04 crore, juxtaposed with a sale value of Rs. 13,548.76 crore. This translates to a net value of Rs. 253.28 crore. On the other hand, Domestic Institutional Investors (DII) also exhibited robust activity, with a buy value of Rs. 12,165.87 crore and a sale value of Rs. 10,594.87 crore, resulting in a substantial net value of Rs. 1,571.00 crore.

Bank Nifty

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

The gainers included Federal Bank with a 4.89% increase, Bandhan Bank with a 1.85% increase, IDFC First Bank with a 1.85% increase, Punjab National Bank with a 1.20% increase, and IndusInd Bank with a 1.00% increase. On the other hand, the biggest losers in the sector included State Bank of India with a 0.57% decline, Axis Bank with a 0.39% decline, Kotak Bank with a 0.24% decline, and Bank of Baroda with a 0.11% decline. These results suggest that some of the banking stocks performed better for the day.

Rupee Strengthens Against US Dollar Amidst Positive Market Sentiment

On Friday, the Indian rupee saw a modest rise of four paise, settling at 83.01 against the US dollar. This uptick was attributed to favorable conditions in the domestic equity markets and a decrease in crude oil prices, bolstering investor confidence.

Despite these positive factors, the rupee’s ascent was restrained by the strength of the American currency and foreign fund outflows. This limited the rupee’s potential for significant gains against the dollar.

In interbank foreign exchange trading, the rupee commenced at Rs. 83.03 and reached an intraday peak of Rs. 83.00 against the US dollar, reflecting a marginal strengthening trend throughout the trading session.

Meanwhile, the dollar index, measuring the greenback’s performance against a basket of major currencies, recorded a slight increase of 0.12%, standing at 104.32.

On the commodities front, Brent crude futures, serving as the global oil benchmark, experienced a marginal decline of 0.07%, settling at $82.80 per barrel. This decrease in crude oil prices further supported the rupee’s upward trajectory against the US dollar.

Stocks Highlights

Wipro Ltd. witnessed a notable increase in share price, climbing by 4.52% from its previous close of Rs 518.50 to reach Rs 541.95. Notably, only 1.37% of trading sessions in the last 19 years saw intraday gains higher than 5%, indicating the significance of this uptrend.

Despite a slight decline in quarterly revenue of 1.95%, the company’s performance remains stable, with the lowest revenue decline observed in the past three years. Additionally, Wipro Ltd. allocated 1.11% of its operating revenues towards interest expenses and 59.42% towards employee costs for the fiscal year ending on March 31, 2023.

Conversely, Power Grid Corporation of India Ltd. experienced a decrease in share price, dropping by -2.54% from its previous close of Rs 281.65 to Rs 274.50. Intriguingly, only 1.03% of trading sessions in the last 16 years saw intraday gains higher than 5%, highlighting the rarity of such occurrences.

Despite this decline, a bullish trend is anticipated, as indicated by a 5-day moving crossover observed on February 14, 2024. Historical data suggests an average price gain of 2.43% within 7 days following this signal over the past 5 years.

Furthermore, Power Grid Corporation of India Ltd. allocated 21.14% of its operating revenues towards interest expenses and 5.5% towards employee costs for the fiscal year ending on March 31, 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 0.01 percent to settle at 15.22 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1508
Decliners – 1007
52Wk High –  154
52Wk Low – 8
High Band Hitters – 121
Low Band Hitters – 47
200d SMA – 19867
50d SMA – 21566
20d SMA – 21703

Top Gainers and Losers Stocks

The top gainers were Wipro (+4.52%), SBI Life (+4.17%), M&M (+4.13%), Adani Ports (+3.40%), and Bajaj Auto (+2.72%).

The top losers were Power Grid (-2.54%), Britannia (-0.58%), SBIN (-0.57%), Reliance (-0.55%), and NTPC (-0.55%).

Top Gainers and Losers Sector

The top gainers sector were Auto (+2.21%), Pharma (+1.63%), Realty (+1.53%), IT (+1.26%), and Media (+0.99%).

The top losers sector were Oil & Gas (-0.61%).

SECTORS – NOTABLE ACTION
AUTO +2.21%
PHARMA +1.63%
REALTY +1.53%
OIL & GAS -0.61%

Stocks Ban List

(SEBI) F&O ban list (CANBK open at +588.10 and close at -585.85), (INDUSTOWER open at +221.85 and close at -220.55), (HINDCOPPER open at -258.20 and close at +258.30), (ZEEL open at -188.00 and close at -183.75), (BANDHANBNK open at +199.70 and close at +200.80), (INDIACEM open at +238.00 and close at +243.35), (ABFRL open at -238.50 and close at -230.85), (DELTACORP open at +140.15 and close at +140.05), (BALRAMCHIN open at +375.00 and close at -371.80), (ASHOKLEY open at +174.80 and close at -174.20), (SAIL open at +127.10 and close at +127.45), and (BIOCON open at +276.00 and close at +286.85) 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, RBLBANK, VEDL, PVRINOX, GMRINFRA, TATACHEM, PEL, BHEL, and NMDC stocks has the possibilities of entrance in the ban list.

DELTACORP, BALRAMCHIN, ASHOKLEY, SAIL, and BIOCON stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 21900 to 22150 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty 50 Extends Winning Streak Amidst Volatility
Gains in SBI and PSU Banks Propel Market to Close Higher in Volatile Session
Intraday Volatility High Despite Narrow Range

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