February 23rd 2024 Stock Market analysis

‍Markets Stall Despite Record Highs; Banking Sector Bears the Brunt‍

Indian equity benchmarks experienced a volatile session on February 23, initially reaching new highs before relinquishing gains to end the day with marginal losses. The 30-pack Sensex soared to a record peak of 73,394.44 but ultimately closed 0.02 percent lower at 73,142.80. Similarly, the broad-based Nifty, after touching a new high of 22,297.50, concluded the day with a marginal decline of 0.02 percent, settling at 22,212.70.  Investors refrained from establishing long positions in anticipation of key economic data releases scheduled for February 29, including GDP data, fiscal deficit figures for January, and data pertaining to eight infrastructure industries.

Reliance emerged as the most actively traded stock, with a value of 2,986.65 and a trading volume worth 2,15,331.35.

Technical Outlook on 26th February 

Nifty is anticipated to find immediate support levels near 22,157 followed by 22,102, while resistance levels are expected at 22,268 and 22,323. Currently, Nifty appears poised for a negative range-bound trading session.

Similarly, Bank Nifty is projected to encounter immediate support around 46,550 and 46,289, with resistance levels seen at 47,072 and 47,333. Presently, Bank Nifty indicates a negative range-bound trading scenario.

Derivative Outlook on 26th February

PCR Analysis: Nifty PCR-OI has decreased with nifty has slight negative close which shows mild CALL WRITING.

Open Interest Analysis: Nifty future Feb contract OI has decreased with negative close which shows Long Unwinding.

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 14.97 vs 15.20 (DoD) basis which shows decrease in volatility.‍

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Jio Financial Services Surpasses Rs 2 Lakh Crore Market Cap; Reliance Industries Achieves New Record High‍

Jio Financial Services Ltd achieved a significant milestone as its market capitalization crossed the Rs 2 lakh crore mark for the first time, propelled by a 35 percent surge in its share price this year. This surge was further bolstered by a 8 percent rise in its shares to a record Rs 326 at 10:30 am, marking the fifth consecutive session of gains and a cumulative increase of nearly 17 percent during this period, resulting in a market capitalization of Rs 2.08 lakh crore. Concurrently, its parent company, Reliance Industries, also reached a record high on February 23, with its shares hitting Rs 2,989 intraday. Currently, 39 companies are trading above Rs 2 lakh crore market capitalization on local stock exchanges, with Reliance Industries leading the pack at Rs 20.05 lakh crore, followed by Tata Consultancy Services and HDFC Bank at Rs 14.78 lakh crore and Rs 10.78 lakh crore, respectively. In its December quarter earnings report, Jio Financial reported a net profit of Rs 293 crore and a net interest income of Rs 269 crore, with total interest income and revenue reaching Rs 414 crore and Rs 413 crore, respectively. Embracing a strategic shift towards secured lending, Jio Financial aims to enhance its secured lending business through the introduction of two new products: Device-as-a-Service, providing operating and financing leases for devices such as Airfiber, phones, and laptops through its subsidiary Jio Information Aggregator Services Ltd, and supply-chain financing, a short-term self-liquidating loan product catering to suppliers' working capital requirements, slated for launch in the coming quarters, as outlined in a B&K Securities report. Moreover, in January, Jio Financial Services and Blackrock Financial Management submitted documents to the Securities and Exchange Board of India for the establishment of a mutual fund business in India. Since its listing on the stock exchange on August 21, 2023, Jio Financial Services' stock has witnessed a growth of over 21 percent.