How are the Markets Looking ?
Today marks an incredible start to the month, with the Nifty closing at an all-time high of 22,267. This achievement is even more remarkable when considering that less than five weeks ago, the Nifty was at 18,800. The market has experienced a swift recovery, defying all expectations of a downturn.
Nifty Heatmap
The Nifty Heat Map shows significant green, with large-cap stocks leading the charge. Companies like NTPC, LNT, ITC, Access Bank, Bajaj Finance, and ICICI Bank are driving the market with strong gains. While some stocks show marginal declines, it was an overall positive day for large caps.
Sectorial Overview
Public sector enterprise stocks, in particular, have been performing exceptionally well. They experienced a 2% increase today and have gained an impressive 18% this month. Over the past twelve months, they have surged by 44%, nearly rivalling the real estate sector, which has grown by 49%. The rapid rise of public sector enterprise stocks is worth noting.
Public sector banks also saw a 1.9% increase today, indicating their strong performance. In contrast, sectors such as FMCG (Fast Moving Consumer Goods), real estate, and others experienced more modest gains ranging from 0.5% to 1.6%. Pharma, IT, and Auto were the laggards, with Auto being in a corrective phase rather than experiencing a downward trend.
Mid & Small Cap Performance
Mid caps reached a new high today at 43,382, a testament to their exponential growth. However, small caps showed signs of exhaustion, as they experienced a doji-like pattern, signaling a potential consolidation phase. While it remains uncertain when consolidation may occur, it is expected given the astounding run witnessed throughout the mid-cap sector.
Bank Nifty Overview
Nifty Bank is catching up, with a significant surge from 40,320 to nearly 40,480 over the past five or six sessions. It is highly likely that a new high for Nifty Bank will be reached in the near future.
Stock in Focus – PFC, REC
The exemplary performance of public sector enterprise stocks over the past year is worth mentioning. For instance, PFC has seen its stock price skyrocket from Rs80 to Rs365, while REC has experienced a similar increase from Rs80 to Rs374. These substantial gains were unexpected by many, who would have sold their stocks much earlier had they anticipated this remarkable growth.
Highlights – ITC, Axis Bank, L&T
Other large-cap stocks that played a crucial role in boosting the Nifty include L&T, Axis Bank, and ITC. L&T has formed a cup and handle pattern, breaking out to a new high. Meanwhile, Axis Bank has enjoyed remarkable gains of 10% to 12% over the past seven or eight sessions. Lastly, ITC, which has been stagnant for several months, made an impressive comeback with a 3% gain today. It broke out from a trendline pattern, indicating potential further growth.
Highlights – Soaring PSE
The public sector enterprise sector has been on an unstoppable run since May of 2023. In just six months, it has surged from nearly 4,500 to almost 7,000. This phenomenal growth is a reminder to investors to remain unbiased and let stock prices determine their actions. It is essential to avoid preconceived biases and make decisions based on credible market information.
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