Weekly Trade Ends on High Note Bulls Drive Index to Record Level

At the close, the Nifty 50 was at 22,967.65 up by 1.64%

The NSE Nifty 50 index showcased remarkable resilience and surged by 1.64% on Thursday, closing near the coveted 23,000 mark. Market sentiments remained bullish as investors embraced buying opportunities across sectors, driving the benchmark indices to fresh record highs.

The bullish fervor on Dalal Street was palpable, with the Nifty 50 index inching closer to the psychological milestone of 23,000 amidst robust buying activity. Notably, sectors like banking and automotive emerged as frontrunners, contributing significantly to the index’s stellar performance.

The surge in market confidence was further fueled by the Reserve Bank of India’s approval of a substantial Rs 2.1 lakh crore dividend to the government, signaling an improved fiscal outlook and potential reduction in bond yields. This move was likened to an indirect rate cut, eliciting positive sentiments from investors.

Moreover, the broader market sentiment remained buoyant, buoyed by encouraging composite HSBC PMI data for May, indicating strong expansion. Additionally, the early onset of the southwest monsoon provided a further boost to domestic market sentiment, which had previously lagged behind other emerging markets.

As the general elections and their results loomed, bulls maintained their dominance on Dalal Street, driving the Nifty 50 to unprecedented highs. The market’s resilience and optimism amidst mixed global cues underscored investors’ confidence in the Indian economy’s growth trajectory and its ability to weather external uncertainties.

Bank Nifty: Up by 2.06%

The Bank Nifty index commenced the trading session on a positive note, opening in the green and marking an impressive gain of 2.06% by the session’s close. Ending at 48,768.60, the Bank Nifty demonstrated robust performance and bullish sentiment throughout the trading day.

Similarly, the BSE Sensex, another key benchmark index, surged by 1.61% and closed at a high of 75,418.04, also in the green. This substantial increase underscores the overall strength and resilience of the Indian stock market, driven primarily by gains in the banking sector.

In the sectoral domain, the auto sector experienced significant gains, rising by 2.25%. Notably, Mahindra & Mahindra Ltd. led this surge with a substantial increase of 3.53%, followed closely by Eicher Motors Ltd., which saw a rise of 3.40%.

Conversely, the pharmaceutical sector emerged as the top loser, declining by 0.52%. Within this sector, Lupin Ltd. faced a significant setback, losing 5.06%. Similarly, Sun Pharmaceutical Industries Ltd. experienced a drop of 2.71%.

Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs) displayed notable activity, with a buy value of Rs. 19,821.55 crore and a sale value of Rs. 15,150.60 crore, resulting in a net value of Rs. 4,670.95 crore.

Conversely, Domestic Institutional Investors (DIIs) engaged in trading with a buy value of Rs. 12,439.40 crore and a sale value of Rs. 12,292.89 crore, resulting in a marginal net value of Rs. 146.51 crore.

Bank Nifty

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

The gainers included Axis Bank with a 3.37% increase, IndusInd Bank with a 2.61% increase, AU Bank with a 2.60% increase, Bandhan Bank with a 2.51% increase, and HDFC Bank with a 2.31% increase.

These results suggest that most of the banking stocks performed better for the day.

Stocks Highlights

Adani Enterprises Ltd. Shows Strong Performance Despite Revenue Contraction

Adani Enterprises Ltd. has experienced a notable increase in its share price, moving up by 8.19% from its previous close of Rs 3,140.95, with the last traded price at Rs 3,398.20. The company also announced a dividend of Rs 1.3 per share on May 2, 2024, with a record date set for June 14, 2024.

Despite this positive market performance, Adani Enterprises faced a significant 28.87% decline in sales, marking its first revenue contraction in three years. However, the company’s stock has delivered an impressive three-year return of 138.84%, outperforming the Nifty 100’s return of 53.38%.

In terms of financial management, Adani Enterprises allocated 4.72% of its operating revenues towards interest expenses and 2.42% towards employee costs for the year ending March 31, 2024. These metrics indicate a balanced approach to managing financial obligations and workforce expenses.

Sun Pharmaceutical Industries Ltd. Faces Stock Decline but Outperforms in ROE

Sun Pharmaceutical Industries Ltd. saw its share price decrease by 2.71% from its previous close of Rs 1,539.30, with the last traded price at Rs 1,497.55. Despite the stock’s recent dip, the company delivered a return on equity (ROE) of 15.04% for the year ending March 31, 2024, outperforming its five-year average of 10.79%.

Financially, Sun Pharma spent less than 1% of its operating revenues on interest expenses and 19.44% on employee costs for the same period. Over the past three years, the stock has yielded a return of 122.96%, significantly higher than the Nifty 100’s return of 53.38%.

Advance Decline Ratio

Today, the advance-decline ratio was 0.85, and the market breadth was negative. The volatility index India Vix decreased by 0.40 percent to settle at 21.38 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1177
Decliners – 1388
52Wk High – 121
52Wk Low – 18
High Band Hitters – 96
Low Band Hitters – 80
200d SMA – 20955
50d SMA – 22332
20d SMA – 22416

Top Gainers and Losers Stocks

The top gainers were Adani Enterprises (+8.19%), Adani Ports (+4.80%), M&M (+3.53%), Eicher Motors (+3.40%), and Axis Bank (+3.37%).

The top losers were Sun Pharmaceutical (-2.71%), Power Grid (-2.07%), Hindalco (-1.25%), Coal India (-0.94%), and NTPC (-0.44%).

Top Gainers and Losers Sectors

The top gainers sector were Auto (+2.25%), Financial Services (+1.90%), IT (+1.28%), Oil & Gas (+1.20%), and Realty (+1.13%).

The top losers sector were Pharma (-0.52%).

SECTORS – NOTABLE ACTION
AUTO +2.25%
FINANCIAL SERVICES +1.90%
IT +1.28%
PHARMA -0.52%

Stocks Ban List

(SEBI) F&O ban list (HINDCOPPER open at -380.90 and close at -374.20), (METROPOLIS open at +1956.00 and close at -1946.85), (PNB open at -126.50 and close at +126.65), (PEL open at -820.00 and close at +818.95), (BANDHANBNK open at -183.95 and close at -188.50), (INDIACEM open at -208.35 and close at +209.25), (IEX open at -155.70 and close at +155.75), (NATIONALUM open at -195.05 and close at -191.15), (ABCAPITAL open at -224.35 and close at +226.05), (BALRAMCHIN open at -377.00 and close at +377.10), (ZEEL open at +152.50 and close at -148.55), (IDEA open at -13.50 and close at +14.05), and (BIOCON open at -309.95 and close at +315.50) 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.

IDFCFIRSTB, ABFRL, SAIL, CANBK, GNFC, BHEL, TATACHEM, BSOFT, and CHAMBLFERT stocks has the possibilities of entrance in the ban list.

BALRAMCHIN, ZEEL, IDEA, GRANULES, and BIOCON stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 22600 to 23200 is the Nifty 50 trading range.

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