February 19th 2024 Stock Market analysis

Indian Stock Rally Continues: Nifty 50 Hits New High for Fifth Consecutive Session

Indian shares continued their upward trajectory on Monday, marking the fifth consecutive session of gains, as the Nifty 50 index surged to a new record high, buoyed by strong performances in financials and energy stocks. This latest surge represents the sixth occasion in 2024 that the Nifty 50 has reached an all-time high. The NSE Nifty 50 index reached a peak of 22,186.65, rising by 0.66%, before settling 0.37% higher at 22,122.25. Similarly, the S&P BSE Sensex climbed by 0.39% to reach 72,708.16, remaining approximately 1% below its previous all-time high of 73,427.59. Both indices have demonstrated resilience in the face of hot U.S. inflation data, in contrast to their Asian counterparts, with both the Nifty 50 and Sensex recording gains for five consecutive sessions, amounting to approximately 2.3% each.

Technical Outlook on 20th February 

The Nifty has formed a doji candle on the daily chart, signaling indecision in the current trend. For intraday trading, Nifty may find immediate support levels near 22,040 followed by 21,958, while resistance levels are anticipated around 22,205 and 22,287. Presently, Nifty is poised for mild profit booking.

Similarly, Bank Nifty is also expected to encounter immediate support levels near 46,336 and 46,137, with resistance levels projected at 46,735 and 46,934. Bank Nifty is currently showing signs of mild profit booking.

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Derivative Outlook on 20th February

PCR Analysis: Nifty PCR-OI has increased with nifty has positive close which shows PUT WRITING.

Open Interest Analysis: Nifty future Feb contract OI has increased with positive close which shows Long Buildup.

Cost of Carry Analysis: Nifty FEB month contract has ended in low compare with MARCH contract and low range compare with previous session which indicates a negative bias.

India VIX Analysis: India VIX has closed at 16.02 vs 15.22 (DoD) basis which shows increase in volatility.

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YES Bank Shares Slide 4% as 0.86% Equity Changes Hands: Investors React

On February 19, Yes Bank shares experienced a notable downturn, plummeting by 4.58% following a significant shift in the bank's equity, with 0.86% changing hands during the trading session. This translated to approximately 24.78 crore shares, valued at Rs 674 crore, being traded on the exchanges. Consequently, Yes Bank shares concluded the day's trading at Rs 27.1 on the National Stock Exchange, marking a considerable decline.

During the same period, notable transactions involving Yes Bank shares took place. Global investment firm Carlyle Group reduced its stake in Yes Bank by 1.3%, amounting to Rs 1,057 crore, through an open market transaction on February 15. This move, executed via its affiliate CA Basque Investments, involved offloading 39 crore shares of Yes Bank on the Bombay Stock Exchange. Concurrently, on the same day, Morgan Stanley Asia Singapore PTE acquired 30 crore shares of Yes Bank at Rs 27.1 apiece through a bulk deal, totaling Rs 830 crore. Following these transactions, Carlyle Group's shareholding in Yes Bank decreased from 6.43% to 5.08%. Despite these developments, Yes Bank shares have shown significant gains, rising by 63% over the past year and 59% in the last six months.