Weekly Expiry Thrills: Nifty Up Despite Early Dip

At the close, the Nifty 50 was at 23,567.00 up by 0.22%

Today, the NSE Nifty 50 opened in green and climbed by 0.22%, closing above 23,550. The Indian equity market ended positively on June 20, with the Nifty finishing at 23,567, up 51 points. Realty, metal, and oil & gas stocks led this upward movement. Although there was an initial impulsive reaction, the index remained rangebound for the rest of the day, concluding the weekly expiry trade with a gain of 51 points.

After showing minor weakness on Wednesday, Nifty rebounded on Thursday. The index displayed gradual upside momentum with narrow range movements, ending the day 51 points higher. Metal and Realty sectors emerged as top performers, contributing significantly to the index’s rise.

Benchmark equity indices skyrocketed to new all-time highs, fueled by strong buying in leading stocks. Despite significant volatility, the Nifty surged to 23,567, closing on a high note. In the short term, all eyes will be on the upcoming Union Budget and the progress of the monsoon season. On the global front, falling US bond yields have recently boosted FII inflows. Additionally, fertilizer stocks gained momentum, spurred by proposed GST removal and MSP hikes.

The government has expressed concerns about increasing retail participation in derivatives trading. Authorities fear significant wealth loss among retail traders if markets crash. Finance Minister Nirmala Sitharaman highlighted that rapid growth in retail F&O trading could adversely affect investor sentiment and household finances.

Despite significant volatility, the Nifty 50’s new lifetime high demonstrates market resilience and investor confidence. However, ongoing regulatory concerns and global economic indicators will continue to shape market dynamics.

Bank Nifty: Up by 0.75%

Indian stock market witnessed a promising start as the Bank Nifty embarked on a positive trajectory, opening with a commendable surge of 0.75 percent. This upward momentum translated into a promising closure at 51,783.25, painting the charts green and fostering an optimistic sentiment among market participants.

Simultaneously, the BSE Sensex charted its course with a modest yet significant uptick of 0.18 percent, reaching a commendable high of 77,478.93 by day’s end.

In the sectorial front, the real estate sector (realty) emerged as a clear winner, surging by a healthy 2.02%. Leading the pack within realty was Prestige Estates Projects Ltd., whose stock price climbed an impressive 7.04%. Macrotech Developers Ltd. also showed strong gains, rising by 2.55%.

On the flip side, the pharmaceutical sector (pharma) took a tumble, dropping 0.51%. Sanofi India Ltd. was hit particularly hard, with its share price plummeting by 2.65%. Sun Pharmaceutical Industries Ltd. wasn’t spared either, experiencing a decline of 1.80%.

Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI) have demonstrated a bullish stance with a buy value of Rs. 16,277.11 crore, while their sale value stood at Rs. 15,861.81 crore. This resulted in a positive net value of Rs. 415.30 crore, underscoring their optimistic outlook on the Indian market.

Conversely, Domestic Institutional Investors (DII) showed a more cautious approach. Their buy value was Rs. 12,564.28 crore, whereas the sale value reached Rs. 12,890.09 crore. This led to a net outflow of Rs. 325.81 crore, indicating a more conservative sentiment among domestic investors.

Bank Nifty

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

The gainers included Bandhan Bank with a 4.60% increase, Federal Bank with a 2.49% increase, IDFC First Bank with a 2.11% increase, AU Bank with a 1.67% increase, and ICICI Bank with a 1.06% increase.

On the other hand, the biggest losers in the sector included State Bank of India with a 0.90% decline, and IndusInd Bank with a 0.11% decline. These results suggest that most 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 Hits Over Two-Month Low Amid Geopolitical Tensions

The Indian rupee fell by 17 paise, closing at a two-month low of 83.61 against the US dollar on Thursday. This decline occurred despite the surge in domestic equity markets, driven by increasing crude oil prices due to renewed geopolitical tensions in the Middle East. The firm American currency against major rivals further pressured the rupee.

Even though there was an influx of foreign capital and a positive momentum in the domestic equity markets, these factors were insufficient to bolster the rupee. At the interbank foreign exchange market, the rupee opened at 83.43 and briefly hit an intra-day high of 83.42 before plunging to an all-time low of 83.68 during the session. The currency ultimately settled at 83.61, marking a significant drop from its previous close.

On the previous day, the rupee had settled just 1 paisa lower at 83.44 against the dollar. This recent depreciation reflects the broader impact of a strong US dollar and mixed performance in Asian markets. The rupee’s current level is comparable to its previous low on April 16 this year, where it also closed at 83.61 against the dollar.

Contributing to the rupee’s decline, the dollar index, which measures the greenback’s strength against a basket of six currencies, increased by 0.21% to 105.10. Additionally, Brent crude futures, the global oil benchmark, rose by 0.18% to $85.22 per barrel, adding further pressure on the rupee.

The recent decline of the rupee highlights the complex interplay of global geopolitical tensions, oil prices, and currency market dynamics. Investors and market participants should stay vigilant, as these factors continue to influence the rupee’s performance in the near term.

Stocks Highlights

Hindalco Industries Ltd. Shares on the Rise Amid Topline Contraction
Hindalco Industries Ltd. saw its share price climb by 2.34%, rising from Rs 662.40 to Rs 677.90. Notably, only 3.05% of trading sessions in the past 19 years have witnessed intraday declines exceeding 5%. Despite the recent uptick, Hindalco faces challenges with sales decreasing by 3.12%, marking its first revenue contraction in three years. Additionally, a 20-day moving average crossover appeared, signaling potential bearish trends. Historically, this signal has resulted in an average price decline of 2.1% within seven days over the past five years. Nevertheless, Hindalco’s three-year return of 72.88% outperformed the Nifty 100’s 52.57%, showcasing its robust long-term performance.

Hero MotoCorp Ltd. Faces Decline Despite Strong Revenue Growth
Hero MotoCorp Ltd. experienced a share price decline of 2.40%, dropping from Rs 5,647.70 to Rs 5,511.95. Over the past 19 years, only 0.99% of trading sessions have seen intraday declines above 5%. Despite this setback, Hero MotoCorp’s annual revenue growth of 11.28% surpassed its three-year CAGR of 6.96%, indicating strong financial health. A bearish 10-day moving average crossover emerged recently, with an average price decline of 2.31% within seven days following this signal over the last five years. Nevertheless, Hero MotoCorp delivered an impressive three-year return of 86.79%, significantly outperforming the Nifty 100’s 52.57%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.74, and the market breadth was positive. The volatility index India Vix decreased by 2.68 to settle at 13.35 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1676
Decliners – 963
52Wk High – 188
52Wk Low – 8
High Band Hitters – 138
Low Band Hitters – 34
200d SMA – 21293
50d SMA – 22648
20d SMA – 23035

Top Gainers and Losers Stocks

The top gainers were Hindalco (+2.34%), Grasim (+2.20%), JSW Steel (+1.86%), BPCL (+1.82%), and Adani Ports (+1.54%).

The top losers were Hero MotoCorp (-2.40%), M&M (-2.04%), Sun Pharmaceutical (-1.80%), HDFC Life (-1.04%), and NTPC (-1.03%).

Top Gainers and Losers Sectors

The top gainers sector were Realty (+2.02%), Metal (+1.82%), Oil & Gas (+0.92%), Financial Services (+0.40%), and Consumer Durables (+0.14%).

The top losers sector were Pharma (-0.51%), and Auto (-0.45%).

SECTORS – NOTABLE ACTION
REALTY +2.02%
METAL +1.82%
OIL & GAS +0.92%
PHARMA -0.51%
AUTO -0.45%

Stocks Ban List

(SEBI) F&O ban list (INDUSTOWER open at +335.75 and close at +336.30), (CHAMBLFERT open at +470.00 and close at +557.85), (PEL open at -895.25 and close at +907.85), (HAL open at -5311.00 and close at -5288.60), (BALRAMCHIN open at +442.00 and close at +441.75), (HINDCOPPER open at -327.00 and close at +333.85), (INDIACEM open at -219.50 and close at +233.15) and (SAIL open at -150.50 and close at +154.03) 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.

PNB, IEX, BSOFT, BIOCON, BANDHANBNK, LICHSGFIN, GMRINFRA, IRCTC, and METROPOLIS stocks has the possibilities of entrance in the ban list.

SAIL stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 23350 to 23800 is the Nifty 50 trading range.

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