Indian markets bounced back on April 26 supported by positive global cues, strong earnings from ICICI Bank, which led to buying in financials, and initial signs of a possible slow down in COVID-19 infections.
Bulls pushed the S&P BSE Sensex above 48,000, while the Nifty rose 1 percent to close above 14,450 as it failed to hold on to 14,500 levels on a closing basis. The Sensex ended the day 508 points higher at 48,386, while the Nifty was up 143 points up at 14,485.
Sectorally, buying was seen in realty, metal, banks, and energy stocks while profit-taking was visible in healthcare stocks.
On the broader markets front, the S&P BSE midcap index rose 0.6 percent and the S&P BSE smallcap index gained 0.8 percent.
"With the support of strong global markets, accumulation in the domestic market increased as the rate of infection is slowing down with a flattening path. Buying interest was broad-based led by banking, realty and metal stocks with a hope that we are nearing the peak of infection,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
“Banking stocks outshined other major sectoral indices due to the positive beginning of quarterly results. The market may remain volatile in the coming days as COVID cases continue to be high, April F&O expiry and upcoming FOMC meeting,” he said.
Here is what experts suggest investors should do on April 26:
Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services Limited
Technically, the index formed a Bullish candle on a daily scale and has been forming higher highs-higher lows from the last two sessions.
Now, it has to continue to hold above 14,400 zones to witness an up move towards 14,600 and 14,700 zones, while on the downside, support exists at 14,300 and 14,150 zones.
S Ranganathan, Head of Research, LKP Securities
Positive global cues coupled with good numbers from ICICI Bank ensured a strong opening on April 26 for markets led by BFSI and metals.
We did, however, see bouts of profit-taking in the afternoon trade in FMCG and pharma stocks ahead of a big earnings day.
Rohit Singre, Senior Technical Analyst, LKP Securities.
The index opened the day with strong gains but profit-booking in the second half saw the index to lose some of its gains to close the day at 14,490 with gains of one percent and formed a small bullish candle on the daily chart.
The Nifty again failed to close above 14,500, making it an immediate hurdle. A close above 14,500 zone can see good gains towards 14,600-14,700 and supports are still placed at 14,400-14,300 zone.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The Nifty was unable to cross the resistance of 14,500-14,700. If we are able to do so, the trend will turn bullish and we can scale up higher to achieve 15,000. On the flip side, if it resists, then we will go down to test the recent lows of 14,150-14,200.
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