The market made new records on Wednesday as well, but that was on expected lines as HDFC Bank was meant to lead the market rally post the positive news developments. But it was not only HDFC Bank, other banking stocks also put their hand up in contributing towards the gains.
The Sensex crossed 80,000 on Wednesday, marking its fastest 10,000-point rally, having hit 70,000 only in December last year. Such was the dominance of financials in Wednesday’s session, that the top six contributors to the Nifty gains were all banking names, led by HDFC Bank and supported by ICICI Bank, Axis Bank, Kotak Mahindra Bank and State Bank of India.
While it was the banks that led the charge on the upside, the other index heavyweights like Reliance Industries, TCS and Larsen & Toubro kept the gains in check. What may give more encouragement to the bulls though, is the fact that the Nifty closed just 20 points adrift of the day’s high of 24,309, which is also the new record high for the index.
Over the next two sessions, the market will deal with a lack of global cues although there are enough and more cues emerging on the macro front, including the FOMC minutes, the Jobless claims and the payrolls data. US markets will remain shut on Thursday due to the independence day holiday.
Thursday will also be the weekly options expiry for the Nifty and that may see a further decisive move on either side for the index.
Foreign investors were net buyers in the cash market on Wednesday, while domestic investors chose to book some profits at higher levels.
Nagaraj Shetti of HDFC Securities said that having shifted closer to the overhead resistance of 24,400, the Nifty can shift into further consolidation or rangebound moves in the short-term before moving higher. A decisive move above 24,400 though, will open up targets towards 24,900 in the coming weeks. 24,110 now is a key support.
The sentiment has yet again shifted towards long trades in the market, said Rupak De of LKP Securities. He expects the index to continue to retain its strength till the time it holds on to levels of 24,000, above which, the Nifty has the potential to move towards 24,500. Only a slip below 24,000 can push the Nifty into consolidation.
Kotak Securities’ Shrikant Chouhan is of the view that till the Nifty retains the 24,200 level, the upmove could continue towards levels of 24,500. A slip below 24,200 can lead to traders exiting their long positions.
Courtesy of HDFC Bank and other banking names, the Nifty Bank too made a new record high of 53,256. But as HDFC Bank cooled off from the highs of the day, the index could not sustain at the higher levels either. Yet, it managed to end its weekly options expiry session with gains of over 900 points. Even underperforming shares like Bandhan Bank were among the top gainers on the Nifty Bank on Wednesday.
Om Mehra of SAMCO Securities said that the 9-Day Moving Average of 52,400 is an immediate downside support for the Nifty Bank, while on the upside, the 127.8% Fibonacci retracement of 53,550 and 161.8% retracement level of 53,900 will act as barriers for the index.
The Nifty Bank is consolidating in the 52,000 – 53,200 range, said Hrishikesh Yedve of Asit C Mehta Investment Interrmediates. In case the index manages to hold on to 53,200, the rally could extend towards levels of 54,000 – 54,200 on the upside.
What Are The F&O Cues Indicating?
These stocks added fresh long positions on Wednesday, meaning an increase in both price and Open Interest:
| Stock | Price Change | OI Change |
| Axis Bank | 1.85% | 17.47% |
| HDFC Bank | 1.98% | 14.91% |
| ICICI Bank | 0.71% | 14.62% |
| Federal Bank | 3.33% | 12.95% |
| GNFC | 1.19% | 12.33% |
These stocks saw fresh short positions on Wednesday, meaning a decline in price but increase in Open Interest:
| Stock | Price Change | OI Change |
| Ashok Leyland | -2.42% | 15.94% |
| Titan | -1.41% | 10.22% |
| JK Cement | -0.93% | 8.12% |
| AU Small Finance Bank | -0.72% | 7.41% |
| TVS Motor | -0.91% | 7.15% |
Short covering was seen in these names on Wednesday, meaning an increase in price but a decline in Open Interest:
| Stock | Price Change | OI Change |
| Mahanagar Gas | 0.22% | -4.09% |
| IPCA Labs | 1.54% | -3.63% |
| PFC | 5.68% | -2.52% |
| Tata Consumer | 3.61% | -2.52% |
| India Cements | 0.26% | -2.48% |
These are the stocks to watch out for ahead of Thursday’s trading session:
- Bajaj Finance: Customer franchise at 88.11 million from 72.98 million last year. New loans booked up 10% to 10.97 million from 9.94 million last year. AUM growth of 31% to ₹3.54 lakh crore. Deposits book up 26% from last year to ₹62,750 crore. Net liquidity surplus at ₹16,200 crore as of June 30, 2024.
- Vedanta: Total aluminium production in the June quarter up 3% year-on-year but flat quarter-on-quarter. Alumina production at the Lanjigarh refinery up 36% year-on-year and 11% quarter-on-quarter. Mined Metal production up 2% from last year but down 12% from March quarter. Saleable metal production up 1% from last year and down 4% from the March quarter. Refined Zinc production at 211 kt, up 1% from last year.
- ITD Cementation: Promoters mulling stake sale. However, talks in preliminary stage and no final decision taken yet.
- Suryoday Small Finance Bank: Gross Advances up 42% year-on-year and 4% sequentially to ₹9,037 crore. Disbursements up 46% from last year to ₹1,740 crore but down 26% from the March quarter. Total deposits up 42% from last year to ₹8,137 crore. Deposits up 5% quarter-on-quarter. Gross NPA at 2.67% from 3% last quarter. Collection efficiency at 101% from 100.4% last quarter.
- L&T Finance Holdings: Retail Disbursements up 33% at ₹14,830 crore. Retail loan book up 31% to ₹84,440 crore. Realisations at 95% from 82% last year.
- Suraj Estates: Enters into a definitive agreement for a sale today with the Clearing Corporation of India. The agreement pertains to the sale of an additional area comprising of 7th, 8th and 9th (part) floors to be constructed over existing building known as CCIL Bhavan. The sale covers a carpet area of about 22,410 square feet, valued at ₹89.78 crore.
- Brigade Enterprises: Signs joint development agreement for residential project spread across eight acres in Bengaluru. Gross development value of the project is said to be ₹1,100 crore.
- GE T&D India: Gets orders from Grid Solutions SAS, France for supply and supervision of high voltage products. The two year contract is worth €64 million Euros. The order though, falls within the ambit of a related party transactions. The company has also received an order from Grid Solutions Middle East FZE, Dubai for the same supply and supervision of high voltage products. The two-year order is worth €26 million and is also a related-party transaction.
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