What’s causing Nifty straight line Rally to All-Time Highs: FOMO or Fundamentals?

At the close, the Nifty 50 was at 24,302.15 up by 0.06%

On July 4, the NSE Nifty 50 index exhibited a mixed performance, starting positively with a marginal increase of 0.06% and closing slightly higher. The index reached an intraday high above 24,400, marking a historic milestone, yet failed to sustain these levels, closing near its daily low. Despite forming a small negative candle, Nifty managed to close above the previous day’s doji, indicating a potential consolidation phase with an upward bias.

Opening at 24,369.95, Nifty touched an all-time high of 24,401 early in the day, maintaining positivity throughout most of the session. However, last-hour selling pressure trimmed most intraday gains, resulting in a flat closure. Ultimately, Nifty closed at 24,302.15, up by 15.65 points or 0.06%.

Meanwhile, India’s Sensex achieved a significant milestone, closing above 80,000 for the first time, mirroring Nifty’s resilience above 24,300. Despite initial gains, both indices experienced retracements, ending marginally higher.

In the broader context, Indian markets mirrored gains in Asian counterparts, bolstered by favorable U.S. economic data hinting at potential interest rate cuts. IT stocks led the charge amidst the weekly F&O expiry, showcasing robust performance amid improving quarterly earnings outlook and reduced U.S. inflationary pressures.

Investor sentiment remains buoyant, supported by expectations of further rate cuts in September, renewed foreign institutional investor (FII) interest, and optimistic outlooks on government spending and corporate earnings.

Bank Nifty: Up by 0.03%

The Bank Nifty started the day positively, opening with a slight gain of 0.03%. It continued its upward trajectory throughout the trading session, closing in the green at 53,103.70, indicating resilience and stability in banking sector stocks.

Simultaneously, the BSE Sensex also began on a positive note, with a modest increase of 0.08%. The Sensex maintained its upward momentum during the day, achieving a high of 80,049.67 by the closing bell, reflecting overall positive sentiment in the broader equity markets.

In the sectorial front, the pharmaceutical sector has experienced a notable rise, gaining 1.39%. Leading this upward trend, Lupin Ltd. saw an impressive increase of 8.18%, showcasing strong performance and investor confidence. Additionally, Laurus Labs Ltd. contributed to the sector’s growth with a 4.14% gain, reinforcing the positive momentum within the pharma industry.

On the flip side, the media sector emerged as the day’s top loser, with a decline of 0.45%. Hathway Cable & Datacom Ltd. led the downward trend, losing 1.62%. Network18 Media & Investments Ltd. followed closely with a 1.59% drop.

Foreign Institutional Investors (FII/FPI) showed a net buying activity with a buy value of Rs. 13,837.28 crore and a sale value of Rs. 11,261.43 crore, resulting in a net positive value of Rs. 2,575.85 crore.

Conversely, Domestic Institutional Investors (DII) reported net selling, with a buy value of Rs. 11,303.32 crore and a sale value of Rs. 13,678.50 crore, leading to a net negative value of Rs. -2,375.18 crore.

Bank Nifty

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

The gainers included ICICI Bank with a 2.53% increase, AU Bank with a 1.64% increase, Kotak Bank with a 1.18% increase, Bank of Baroda with a 0.69% increase, and IDFC First Bank with a 0.31% increase.

On the other hand, the biggest losers in the sector included HDFC Bank with a 2.30% decline, Bandhan Bank with a 1.77% decline, IndusInd Bank with a 0.77% decline, State Bank of India with a 0.17% decline, and Axis Bank with a 0.17% decline. These results suggest that some 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 Resilience Against US Dollar Amidst Market Volatility

The Indian rupee put up a fight on Thursday, managing to close nearly unchanged against the US dollar. This resilience came despite initial weakness caused by rising crude oil prices, a major concern for importers like India.

Fortunately, positive developments in the domestic stock market helped bolster the rupee. Key indexes like the Nifty 50 reached record highs, attracting foreign investments and providing much-needed support for the currency.

Throughout the trading day, the rupee fluctuated slightly. It opened at 83.52 per dollar, briefly touched a high of 83.48, and dipped to a low of 83.56. However, by the closing bell, it settled at 83.50, just a single paisa lower than the previous day.

This outcome suggests that the rupee is finding some stability, despite external pressures. While the future remains uncertain, the strong performance of the domestic stock market offers a glimmer of hope for continued stability in the value of the rupee.

Stocks Highlights

Tata Motors Ltd. demonstrated resilience in recent trading sessions, with its share price climbing 2.75% to reach Rs 1,002.50 from its previous close of Rs 975.65. The company’s return on equity (ROE) for the year ending March 31, 2024, stood impressively at 36.97%, surpassing its five-year average of -1.07%. This strong ROE reflects Tata Motors’ effective utilization of shareholder funds.

Moreover, Tata Motors outpaced its three-year compound annual growth rate (CAGR) in revenue, achieving a growth rate of 26.61% compared to the CAGR of 20.47%. However, cautionary signals appeared with a recent sell signal triggered by a 10-day moving average crossover, historically resulting in an average price decline of -3.24% within seven days.

In terms of stock performance against the Nifty 100 index, Tata Motors delivered outstanding returns over the past three years, posting a remarkable 184.16% gain, significantly outperforming the index’s 52.57% return.

HDFC Bank Ltd. experienced a decline in its share price, dropping by -2.30% to Rs 1,728.00 from its previous close of Rs 1,768.65. Despite this setback, HDFC Bank reported robust loan book growth, with advances increasing by 54.39% year-on-year, surpassing its five-year CAGR of 19.71%. This growth underscores HDFC Bank’s strong position in the banking sector.

Similarly, HDFC Bank exceeded its three-year revenue CAGR, achieving a growth rate of 99.35% compared to the CAGR of 37.37%, reflecting its effective revenue generation strategies. However, historical data revealed that only 0.99% of trading sessions in the last 19 years saw intraday gains exceeding 5%, indicating market volatility challenges.

In terms of stock performance relative to the Nifty 100 index, HDFC Bank posted a modest three-year return of 19.48%, contrasting with the index’s 52.57% return.

Advance Decline Ratio

Today, the advance-decline ratio was 1.24, and the market breadth was positive. The volatility index India Vix decreased by 2.65 to settle at 12.86 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1475
Decliners – 1192
52Wk High – 234
52Wk Low – 8
High Band Hitters – 166
Low Band Hitters – 41
200d SMA – 21516
50d SMA – 22959
20d SMA – 23650

Top Gainers and Losers Stocks

The top gainers were Tata Motors (+2.75%), HCL Technologies (+2.63%), ICICI Bank (+2.53%), Sun Pharmaceutical (+1.83%), and TCS (+1.38%).

The top losers were HDFC Bank (-2.30%), Bajaj Finance (-2.06%), Adani Enterprises (-1.47%), Wipro (-1.25%), and Tech Mahindra (-1.20%).

Top Gainers and Losers Sectors

The top gainers sector were Pharma (+1.39%), IT (+1.10%), Auto (+0.73%), Realty (+0.51%), and Oil & Gas (+0.07%).

The top losers sector were Media (-0.45%), FMCG (-0.21%), Financial Services (-0.18%), Metal (-0.03%), and Consumer Durables (-0.01%).

SECTORS – NOTABLE ACTION
PHARMA +1.39%
IT +1.10%
AUTO +0.73%
MEDIA -0.45%
FMCG -0.21%
FINANCIAL SERVICES -0.18%

Stocks Ban List

(SEBI) F&O ban list (INDIACEM open at +288.00 and close at -285.80), and (HINDCOPPER open at +328.00 and close at +326.50) 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.

ABFRL, PEL, BANDHANBNK, IEX, GNFC, BALRAMCHIN, IDEA, IDFCFIRSTB, GMRINFRA, and IEX stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 24150 to 24500 is the Nifty 50 trading range.

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