March 14th 2024 Stock Market analysis

Stock Market Rebounds: Sensex Surges 336 Points, Nifty Approaches 22,150 Mark

The benchmark indices closed positively on March 14, reclaiming ground lost in the previous session, with the Nifty hovering around 22,150 amidst widespread buying across sectors. Market momentum reversed opening losses, propelling Nifty above 22,200 intraday and comfortably pushing Sensex beyond the 73,000 mark by close. Sensex ended up 335.39 points or 0.46 % at 73,097.28, while Nifty gained 149 points or 0.68 %, closing at 22,146.70. Adani Enterprises, Adani Ports, Hero MotoCorp, Hindalco Industries, and ONGC were among the top gainers on the Nifty, whereas Axis Bank, IndusInd Bank, Bajaj Finance, Tata Steel, and JSW Steel witnessed declines. All sectoral indices, except banking, closed in positive territory, with telecom, power, and oil & gas sectors leading gains at 3 percent each, while auto, capital goods, FMCG, Information Technology, healthcare, and metal sectors rose by 1-2 percent. Broader indices outperformed the main indices, with the BSE Midcap index rising by 2.2 percent and Smallcap index gaining 3 percent. Birlasoft, Ipca Lab, and Ambuja Cements saw long build-up, while Axis Bank, NMDC, and Bajaj Finance experienced short build-up.

Technical Outlook on 15th March

Nifty is anticipated to find immediate support around 22,075 followed by 22,004, with resistances likely at 22,289 and 22,432. Presently, Nifty appears poised for a positive range-bound trade.

Bank Nifty is expected to encounter immediate support around 46,463 and then 46,137, while resistances are projected at 47,121 and 47,453. Currently, Bank Nifty seems set for a positive range-bound trade.

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Derivative Outlook on 15th March‍

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

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

Cost of Carry Analysis: Nifty MARCH month contract has ended in high compare with APR contract and high range compare with previous session which indicates a recover from lower levels.

India VIX Analysis: India VIX has closed at 13.62 vs 14.43 (DoD) basis which shows decrease in volatility.

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Railway Sector Rebounds Strongly: IRFC, Railtel, RVNL, and Others Surge by Up to 11%‍

Railway stocks rebounded strongly on March 14 after experiencing corrections of up to 15 % earlier in the week. RITES, IRFC, RVNL, and IRCON International Ltd were among the stocks registering intraday gains of up to 11 %. With a significant portion of these stocks having limited free float due to government holdings of up to 86 percent in some companies, heightened demand can swiftly drive price movements. RITES surged over 10 % to reach an intraday high of Rs 649.70 on NSE, marking an impressive 87 % increase over the past year compared to a 30 % gain for the Nifty during the same period. IRFC, which has delivered remarkable returns of 408 % in the past year, also saw a 10 % increase. Additionally, shares of Railtel, Ircon International, and RVNL witnessed gains of up to 10 %. Conversely, Texmaco Rail, Titagarh Rail, and Jupiter Wagons stocks, which had declined by over 8 percent in the previous session, rebounded and were trading up to 10 % higher. IRCTC also saw a modest increase of 2 %.