Gap Up Weekly Expiry on 21 March 2024: Nifty 50 and Key Market Insights

Discover the latest trends in the NSE Stock Market with insights into Nifty 50’s performance on 21 March 2024, including Option Chain analysis, BankNifty movements, and FII/DII data.

Opening Gains in Nifty 50 On 21 March 2024

On 21 March 2024, the Nifty Fifty kicked off the trading session with an impressive gap up, surging by 150 points to 21,989.90, setting a bullish tone for the day. This significant jump was fueled by robust global cues, indicating strong market sentiment right from the start.

Today’s NSE Share Bazaar

Intraday Performance

As the day unfolded, the Nifty index peaked at 22,080.95 around 11 AM, showcasing its strength early on. However, by 12:15 PM, it dipped to a low of 21,941.30, experiencing some volatility. Subsequently, the index entered a consolidation phase for the remainder of the session, primarily due to the weekly expiry dynamics and the strategic maneuvers of option writers aiming to capitalize on premium decay.

Closing Bell Highlights

Despite the fluctuations throughout the day, the NSE Share Bazaar concluded on a positive note, closing at 22,011.95, marking a gain of 0.79%. The weekly expiry of Nifty options added an extra layer of intrigue to the market dynamics, influencing trading patterns and investor behavior.

BankNifty’s Synchronized Movement

Simultaneously, Bank Nifty commenced trading with a modest gain, opening flat but eventually climbing by 364 points to reach 46,674.85. Throughout the day, it mirrored the movements of the Nifty, maintaining a close correlation between the two indices. The banking sector’s resilience contributed to the overall bullish sentiment in the market.

Institutional Activity

Analyzing the FII/DII data from 21 March 2024, we observe a mixed picture. FIIs divested 1,826.97 crores in the cash segment, while DIIs exhibited strength by injecting 3,208.87 crores into equity. Notably, DIIs overshadowed FIIs in terms of activity, indicating their confidence in the market’s prospects.

FII Derivative Statistics for 21 March 2024

You can download the image below containing the FII derivative statistics for 21 March 2024

FII derivative stats For 21 March 2024

Index Futures Insights

Delving into the long-to-short ratio in Index futures, we find that FIIs increased their exposure, with the ratio rising from 0.45 on 20 March 2024 to 0.49 on the current trading day. This uptrend suggests a growing bullish sentiment among foreign institutional investors.

Top Gainers and Losers in Nifty

Among the top gainers in the Nifty Index were NTPC, BPCL, and POWERGRID, whereas BHARTIARTL, HDFCLIFE, and MARUTI faced losses, reflecting sectoral shifts and individual stock performances.

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BankNifty’s Winners and Underperformers

In the BankNifty Index, PNB, INDUSINDBK, and BANKBARODA emerged as the top gainers, while ICICIBANK and KOTAKBANK lagged behind, showcasing diverse trends within the banking sector.

Sectoral Performance

  • NIFTY NEXT 50: Nifty Next 50 displayed a strong performance on 21 March 2024, opening at 58,110.10 and closing at 58,918.30, marking a significant gain of 2.32%. This index comprises the next 50 stocks in terms of market capitalization after the Nifty 50, providing investors with exposure to a broader segment of the market.
  • NIFTY MIDCAP 100: The Nifty Midcap 100 index exhibited robust growth, opening at 46,430.70 and closing at 47,033.55, reflecting a substantial increase of 2.43%. Comprising mid-sized companies, this index represents a diverse range of sectors and is often viewed as a barometer of economic health beyond large-cap stocks.
  • NIFTY AUTO: Nifty Auto sector showcased positive momentum, opening at 20,541.75 and closing at 20,700.25, recording a notable gain of 1.44%. This index comprises automotive companies and is influenced by factors such as consumer demand, regulatory changes, and economic conditions.
  • NIFTY FMCG: The Nifty FMCG index demonstrated steady growth, opening at 52,726.50 and closing at 53,338.35, registering a modest increase of 0.65%. Comprising fast-moving consumer goods companies, this index is relatively resilient and tends to perform consistently, reflecting consumer spending patterns.
  • NIFTY IT: Nifty IT sector showed positive movement, opening at 36,039.20 and closing at 36,026.80, with a marginal gain of 0.78%. This index includes information technology companies and is influenced by global technology trends, currency fluctuations, and outsourcing opportunities.
  • NIFTY METAL: The Nifty Metal index demonstrated strong performance, opening at 7,974.45 and closing at 8,052.75, marking a significant gain of 2.44%. Comprising metal and mining companies, this index is sensitive to global economic conditions, commodity prices, and infrastructure spending.
  • NIFTY PHARMA: Nifty Pharma sector exhibited positive momentum, opening at 18,494.00 and closing at 18,582.60, recording a notable gain of 1.20%. This index comprises pharmaceutical companies and is influenced by factors such as drug approvals, research and development, and regulatory changes.
  • NIFTY PSU BANK: The Nifty PSU Bank index displayed robust growth, opening at 6,770.70 and closing at 6,679.70, registering a significant gain of 2.14%. Comprising public sector banks, this index is influenced by government policies, economic conditions, and banking regulations.
  • NIFTY OIL & GAS: Nifty Oil & Gas sector showed positive movement, opening at 11,147.65 and closing at 11,201.75, with a gain of 1.32%. This index comprises oil and gas exploration, production, and distribution companies, influenced by global energy demand, geopolitical events, and commodity prices.

Option Chain Analysis

In the Nifty Option Chain data for 27 March 2024, the top three changes in Open Interest Calls include significant increases in 22100CE and 22000CE, while 21900CE saw a decrease. Conversely, in Open Interest Puts, substantial rises were observed in 22000PE and 22100PE, with a moderate increase in 22200PE. For BankNifty, notable increases were seen in Open Interest Calls for 46800CE and 46700CE, alongside a decrease in 46500CE. In Open Interest Puts, considerable rises were noted in 46800PE and 46900PE, along with a substantial increase in 47000PE. These changes reflect evolving trader sentiments, with bullish biases prevailing in certain strike prices while bearish expectations dominate in others.

In conclusion, the trading session on 21 March 2024 offered a blend of excitement and strategic maneuvering, characterized by opening gains, synchronized movements between indices, institutional activities, and sectoral performances. Amidst these dynamics, option chain analysis provides valuable insights for traders navigating the ever-changing landscape of the NSE Stock Market.

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