Stock-Specific Actions and Economic Growth Forecast Drive Market to Positive Closure

At the close, the Nifty 50 was at 22,123.65 up by 0.54%

On March 27, the NSE Nifty 50 index commenced on a positive note, showcasing a gain of 0.54% and maintained its momentum throughout the day, closing firmly in the green. Closing above 22,100, Indian benchmark indices witnessed a buoyant market driven by robust buying in infrastructure and realty stocks. Positive market sentiments were fueled by stock-specific actions and optimistic economic growth forecasts.

The Nifty closed the day at 22,123.65, up by 119 points or 0.54%. Despite a truncated week due to holidays, investors remained focused on upcoming events such as the US GDP data release and the RBI policy announcement next week to ascertain market direction.

Market dynamics were influenced by a narrowed Current Account Deficit (CAD) at $10.5 billion in the third quarter, coupled with buying in heavyweight stocks. Although global cues were mixed, Indian equities exhibited strength, particularly driven by select heavyweights.

Throughout the day, the Nifty steadily climbed, propelled by energy stocks benefiting from a dip in crude oil prices. Additionally, the IT sector witnessed a rebound, contributing to overall gains. While mid- and small-cap stocks outperformed, trading volumes remained subdued.

Despite challenges posed by the holiday-shortened week, the market showcased resilience, supported by positive economic indicators and strategic investments. As investors navigate through upcoming data releases and policy announcements, market direction remains under scrutiny, with a focus on sustaining positive momentum amidst global market dynamics.

Bank Nifty: Up by 0.40%

The Bank Nifty commenced trading on a positive note, opening in the green with a gain of 0.40 percent, and sustained its upward trajectory throughout the trading session. Ultimately, it closed in the green at 46,785.95, reflecting positive sentiment within the banking sector. Likewise, the BSE Sensex displayed robust performance, experiencing a gain of 0.73 percent during the trading day. It closed at a high of 72,996.31, signaling a bullish trend in the broader market.

In the sectorial front, the real estate sector has shown promising gains, surging by 0.85%. Among notable performers, Mahindra Lifespace Developers Ltd. has seen a significant uptick of 2.84%, while Prestige Estates Projects Ltd. followed closely with a gain of 2.68%. However, the IT sector experienced a downturn, marking a loss of 0.64%. Wipro Ltd. faced a setback, witnessing a decline of -1.64%, while LTIMindtree Ltd. also experienced a downturn, with a loss of -1.11%.

Foreign Institutional Investors (FIIs/FPIs) exhibited robust buying behavior with a total buy value of Rs. 19,558.69 crore and a sale value of Rs. 17,388.37 crore, resulting in a net value of Rs. 2,170.32 crore.

On the other hand, Domestic Institutional Investors (DIIs) also engaged in significant transactions, with a buy value of Rs. 26,386.81 crore and a sale value of Rs. 25,189.20 crore, leading to a net value of Rs. 1,197.61 crore.

Bank Nifty

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

The gainers included HDFC Bank with a 1.28% increase, Kotak Bank with a 1.21% increase, Axis Bank with a 1.10% increase, IndusInd Bank with a 1.01% increase, and IDFC First Bank with a 0.26% increase. On the other hand, the biggest losers in the sector included Punjab National Bank with a 0.93% decline, Bank of Baroda with a 0.67% decline, State Bank of India with a 0.48% decline, Bandhan Bank with a 0.44% decline, and AU Bank with a 0.36% decline. These results suggest that some of the banking stocks performed better for the day.

Indian Rupee Weakens Against US Dollar Amidst Global Trends

The Indian rupee faced a decline of 7 paise to close at 83.36 (pro) against the US dollar on Wednesday, influenced by the strength of the American currency against its major counterparts worldwide and the subdued performance of Asian currencies. However, the impact of these factors was mitigated by a surge in domestic markets and a decrease in crude oil prices, as noted by forex traders.

At the interbank foreign exchange market, the rupee opened at 83.33 and touched an intraday low of 83.45 against the dollar before settling at 83.36 (pro). This marks a loss of 7 paise compared to its previous close. Notably, the rupee had exhibited some recovery on Tuesday, gaining 32 paise to close at 83.29 against the US dollar.

The decline in the Indian rupee can be attributed to several factors, including the robust performance of the US dollar and heightened demand for the greenback from importers. Furthermore, the weakness observed in Asian currencies contributed to the rupee’s depreciation.

Meanwhile, the dollar index, a measure of the dollar’s strength against a basket of six major currencies, experienced a marginal decrease, trading at 104.26, indicating some stability in the global currency markets.

In addition to currency dynamics, fluctuations in crude oil prices also impacted market sentiments. Brent crude futures, a key global oil benchmark, witnessed a decline of 0.90% to $85.47 per barrel, offering some relief amidst the currency volatility.

Stocks Highlights

Reliance Industries Ltd. witnessed a notable uptick in its share price, rising by 3.49% from its previous close of Rs 2,883.15 to reach Rs 2,983.75. Notably, the intraday fact check reveals that only a minimal 0.99% of trading sessions in the last 19 years saw intraday declines higher than 5%, indicating the company’s overall resilience in the market. Moreover, the company’s annual revenue growth of 24.43% has outperformed its 3-year Compound Annual Growth Rate (CAGR) of 13.22%, showcasing robust financial performance. However, a sell signal has been triggered as the 20-day moving average crossover occurred recently, historically leading to an average price decline of -2.6% within 7 days. Despite this, Reliance Industries Ltd. has delivered a 3-year return of 44.54%, slightly trailing behind the Nifty 100 index’s return of 54.45%.

On the other hand, UPL Ltd. experienced a decline in its share price, dropping by -2.07% from its previous close of Rs 465.40 to Rs 455.75. The intraday fact check reveals that 2.03% of trading sessions in the last 19 years saw intraday declines higher than 5%, indicating some vulnerability in the company’s performance. Furthermore, UPL Ltd. allocated 5.53% of its operating revenues towards interest expenses and 9.44% towards employee costs in the year ending March 31, 2023. Two sell signals have been triggered with the appearance of both the 14-day and 10-day moving average crossovers, historically resulting in an average price decline of -2.77% and -2.82% respectively within 7 days. These indicators suggest a challenging period ahead for UPL Ltd., emphasizing the need for careful consideration by investors.

Advance Decline Ratio

Today, the advance-decline ratio was 0.73, and the market breadth was negative. The volatility index India Vix decreased by 0.91 percent to settle at 12.70 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1085
Decliners – 1493
52Wk High –  44
52Wk Low – 96
High Band Hitters – 115
Low Band Hitters – 169
200d SMA – 20380
50d SMA – 21948
20d SMA – 22158

Top Gainers and Losers Stocks

The top gainers were Reliance (+3.49%), Maruti (+2.53%), Bajaj Auto (+2.16%), Bajaj Finance (+1.72%), and Titan (+1.62%).

The top losers were UPL (-2.07%), Hero MotoCorp (-2.04%), Wipro (-1.64%), Apollo Hospitals (-1.54%), and Dr. Reddy (-1.42%).

Top Gainers and Losers Sector

The top gainers sector were Realty (+0.85%), Consumer Durables (+0.66%), Oil & Gas (+0.54%), Auto (+0.51%), and Financial Services (+0.42%).

The top losers sector were IT (-0.64%), Media (-0.57%), FMCG (-0.27%), Pharma (-0.22%), and Metal (-0.08%).

SECTORS – NOTABLE ACTION
REALTY +0.85%
CONSUMER DURABLES +0.66%
OIL & GAS +0.54%
IT -0.64%
MEDIA -0.57%
FMCG -0.27%

Stocks Ban List

(SEBI) F&O ban list (SAIL open at +131.00 and close at +133.65) 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.

HINDCOPPER, INDIACEM, NATIONALUM, INDUSTOWER, IDEA, BANDHANBNK, ABFRL, and NMDC stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 22000 to 22300 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Selling Pressure Ends Three-Day Winning Streak, Nifty Drops Below 22,000
Nifty 50 Ends Higher Despite IT Sector Slump
Market Swings End on a Positive Note with Auto and Energy Sector Boost

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