Closing Bell: Nifty ends above 17,700, Sensex gains 311 pts; metal, auto, banks rally

Rupak De, Senior Technical Analyst at LKP Securities

Nifty remained volatile throughout the session as the traders awaited CPI data, which is scheduled tomorrow. The index has been sustaining above critical moving average. Besides, the Nifty has so far remained above the crucial support level of 17,500.

The market will remain a buy on dips as long as the index remains above 17,500. Immediate support is visible at 17,640. On the higher end, the rally may extend towards 17,850/17,970.

Ajit Mishra, VP - Technical Research, Religare Broking:

Markets managed to inch higher in a volatile session, in continuation to prevailing positive tone. On the bechmark front, Nifty settled closer to day’s high to end at 17,722.30; up by 0.56%.

Most of the sectors traded in line and posted decent gains. However, dip in IT majors ahead of earnings capped momentum. Meanwhile, continued recovery on the broader front added to positivity.

Nifty has crossed 17,700 but sustainability would be the key now to test 18,100+ zone. A lot would depend on how the earnings season pans out. Amid all, we recommend continuing with the " buy on dips" approach with focus on stock selection and risk management.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas: 

The Nifty continued with positive momentum and closed with gains for the seventh consecutive trading session. On the daily chart, we can observe that the Nifty has closed exactly at the resistance zone of 17,700 – 17,730 where the daily upper Bollinger band and the upper end of the falling channel is placed.

Despite the negative divergence on the hourly momentum indicator there is no weakness on the price front and the best strategy to trade such an upmove is to hold on to the long positions with a trialing stoploss mechanism. Since last seven trading sessions, the Nifty has not dipped below the previous day low which is an extremely bullish sign and can also be used a crucial level for holding on to the long positions.

In terms of levels crucial support is placed at 17,655 – 17,650 while immediate hurdle is placed at 17,700 – 17,730. Overall, the uptrend is still intact, and we expect Nifty to target levels of 17,800 from short term perspective.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Strong Asian and European market cues bolstered the ongoing bullish sentiment and lifted the Sensex above the crucial 60,000-mark. Although the rally seems to be stretched, the feel good factors like interest rate status quo by the RBI, robust GST collections and mixed economic growth numbers are giving investors the ammo to bet on domestic stocks. While IT stocks tumbled ahead of earnings announcements by frontline companies this week, metals and banking stocks led the broad market rally.

Technically, on intraday time frames the market is holding higher high and higher low formation and after a sharp pullback rally it is comfortably trading above the 50-day SMA (Simple Moving Average) which is largely positive.

For the trend following traders, 17,650 would act as a key support level and above the same, the Nifty could move up till 17,800-17,835. On the flip side, below 17,650 a quick intraday correction is likely, which could pull down the index up to 17,550-17,500.

Dilip Parmar, Research Analyst, HDFC Securities

The Indian rupee erased Monday’s gain following corporate dollar outflows and dollar demand from the importers.

Local traders will eye on tomorrow’s inflation and IIP data for a directional move. The market consensus is expecting lower inflation numbers along with slower output growth.

Spot USDINR may consolidate between 81.70 to 82.50 in the near term.

Vinod Nair, Head of Research at Geojit Financial Services

The domestic equity indices showed resilience and remained in positive territory, primarily led by banking and auto stocks on the expectation of strong quarterly earnings following robust business updates.

The forthcoming CPI inflation data due on Wednesday is expected to remain below the RBI’s upper tolerance level of 6 percent. Meanwhile, in the United States, inflation is projected to decline further from its current level of 6 percent. The US inflation figures, along with the FOMC meeting minutes, are likely to exert a dominant influence on the global market trend.

Rupee Close:

Indian rupee closed 14 paise lower at 82.12 per dollar against previous close of 81.98.

Market Close:

Benchmark indices ended higher on April 11 with Nifty above 17,700 supported by buying across the sectors barring information technology.

At close, the Sensex was up 311.21 points or 0.52 percentat 60,157.72, and the Nifty was up 98.30 points or 0.56percentat 17,722.30. About 2,183 shares advanced, 1,260 shares declined, and 109 shares were unchanged.

Kotak Mahindra Bank, JSW Steel, Eicher Motors, Bajaj Auto and Tata Steel were among the major gainers on the Nifty, while losers included HCL Technologies, TCS, Infosys, Asian Paints and Wipro.

Among sectors, auto, bank, metal, oil & gas, power indices rose 1 percent each, while the IT index fellnearly 1 percent.

The BSE midcap index rose0.4 percent and the smallcap index gained 0.6 percent.

Lemon Tree Hotels signs two new hotels in Nepal

Lemon Tree Hotels announced its latest signing of two franchised hotels- Lemon Tree Premier, Budhanilkantha, Kathmandu, Nepal and Lemon Tree Resort, Lumbini, Nepal. The two combined bring on board almost 200 keys and take the count up to five properties in Nepal under different brands of the Lemon Tree umbrella.

Lemon Tree Hotels Ltd. was quoting at Rs 77.30, up Rs 0.78, or 1.02 percent on the BSE.

JPMorgan View On Bank Of Baroda

-Overweight rating, target at Rs 220 per share
-Reported Q4 gross advances growth of 19 percent & domestic advances growth of 17 percent YoY
-This was led by domestic retail advances growing 27 percent on a YoY basis
-Domestic deposits have grown 13 percent YoY, driving domestic LDR to 76 percent
-Expect bank to deliver 17 percent RoE in Q4FY23, in-line with frontline private banks

BSE Power index up 1 percent supported by Adani Green Energy, Adani Transmission, NHPC

BSE Bank index up 1 percent supported by Kotak Mahindra Bank, ICICI Bank, Bank of Baroda

Saumil Gandhi, Senior Analyst - Commodities, HDFC Securities:

Crude Oil prices edged higher on Tuesday with benchmark NYMEX WTI crude oil were trading up by 0.80% at USD 80.40 per barrel. Crude oil recent rally supported by the prospect of tighter supplies from OPEC and its alliance producers from May, however further upside capped by concerns about the global economic outlook. Meanwhile, traders are watching the progress of talks between Iraq and Kurdistan to restart northern oil exports which could bring more sour crude to the global market.

We expect Crude oil price should consolidate in upper range with traders will closely watch EIA short term energy outlook report which is due later on day. NYMEX WTI Crude oil prices face resistances at $82.80/$84.0 per barrel and support at $78.80 per barrel for the day. MCX Crude Oil April future having supports at Rs 6,480 and resistance at Rs 6,705 for the day.

BSE Oil & Gas index up 1 percent supported by Adani Total Gas, Petronet LNG, ONGC

Market at 3 PM

The Sensex was up 278.85 points or 0.47 percentat 60,125.36, and the Nifty was up 91.80 points or 0.52percentat 17,715.80. About 1,989 shares advanced, 1,311 shares declined, and 83 shares were unchanged.

Zydus Lifesciences gets final USFDA nod for Tavaborole Topical Solution

Zydus Lifesciences has received final approval from the United States Food and Drug Administration (USFDA) to manufacture and market Tavaborole Topical Solution.

Navneet Damani, Senior VP – Commodity Research at Motilal Oswal Financial Services:

Gold continue to trade higher, as the dollar eased while investors awaited this week’s U.S. inflation data that could influence the Federal Reserve’s monetary policy trajectory. Strong U.S. employment report released on Friday raised bets that the U.S. central bank would raise interest rates next month, with markets pricing in more than 70percentchance of a 25 basis-point hike, according to the CME Fed-Watch tool.

Market participants, this week, are now also keeping an eye on the FOMC meeting minutes where comments from Governor Powell and officials will be important to keep an eye on.

Federal Reserve Bank of New York President John Williams said that financial system troubles that drove the central bank to provide large amounts of credit to banks was not collateral damage from the Fed’s aggressive effort to lower inflation. SPDR holdings rose 0.25percentto 933.22 tonnes on Monday, from 930.91 tonnes on Thursday. Broader trend on COMEX could be in the range of $1985-2010 and on domestic front prices could hover in the range of Rs.59,800 – 60,800 could be expected.

Dollar slides on European market reopening

The dollar gave back the previous day's advances against the euro and pound but held some gains against the yen on Tuesday as traders' attention turned to the U.S. inflation data, due on Wednesday for signs of how close U.S. rates are to peaking.

The euro was up 0.4percentat $1.0903 and the pound was up 0.5 percentat $1.2439 as most European markets returned from the long Easter weekend.

European stock markets trade higher:

Shares of Sagar Cements surged after a huge block deal in which 60.4 lakh shares changed hands on the BSE on April 11.

Kaveri Seed to incorporate wholly-owned subsidiary in Bangladesh

Kaveri Seed Company has received approval from its board of directors for incorporation of a wholly-owned subsidiary in Bangladesh under the name of Kaveri Seed Company Bangladesh Private Limited, due to various business opportunities available in that country.

Market at 2 PM

Benchmark indices were trading higher with Nifty around 17,700.

The Sensex was up 269.65 points or 0.45 percentat 60,116.16, and the Nifty was up 87.90 points or 0.50percentat 17,711.90. About 1,931 shares advanced, 1,336 shares declined, and 86 shares were unchanged.

Rahul Pagidipati, CEO, ZebPay 

Bitcoin has been on an upward trajectory since the beginning of 2023. On Jan 1st, Bitcoin began trading at roughly $16,500. As of 11th April, the asset has been trading above the $30,000 mark which is close to an 80% gain since Jan 2023. This is the first time since June 2022, that Bitcoin has reached this level. If the asset sustains above the key psychological resistance level of $30,000 we might see the price rise further.

This week’s US Consumer Price Index(CPI) data could potentially impact this trend further. If the CPI data encourages the Fed to pause interest rate hikes, it can bolster the price of Bitcoin. Irrespective of the near-time price gains and falls, we believe Bitcoin is a fundamentally strong asset with remarkable potential in the long run.

Trident's bath linen production at 3,556 metric tonnes in March

Under the home textiles division, Trident reported bath linen production at 3,556 metric tonnes in March 2023, bed linen at 3.12 million metres, and yarn at 8,675 metric tonnes, while in the paper & chemicals division, the paper business recorded 12,010 metric tonnes of production and chemical business registered production of 9,378 metric tonnes.

Trident was quoting at Rs 31.59, up Rs 1.83, or 6.15 percent.

Nifty Metal index up 1 percent led by JSW Steel, Jindal Steel, Tata Steel

Schaeffler India trades ex-dividend

Schaeffler India is trading ex-dividend with effect from April 11. The company has announced a final dividend of Rs 24 per share.

IndusInd Bank signs co-financing loan agreement with Citi and Japan International Cooperation Agency (JICA), reported by Bloomberg. As per the agreement, Citi To give $30 million and JICA to lend 13 billion Yen to IndusInd Bank for farm lending.

Morgan Stanley View On Tata Motors 

-Overweight rating, target at Rs 513 per share
-JLR raised its Q4 FCF guidance sharply, driven by strong volumes in March quarter
-Believe company will be a deleveraging play in 2023 & EV scale up play in 2024

Kotak Institutional Equities downgrades ABB India to 'reduce'; stock falls 4%

Brokerage firm Kotak Institutional Equities has downgraded its rating for ABB India to 'reduce' from 'buy' citing downside risks in the near term.

The firm also assigned a target price of Rs 3,425 for the stock, which reflects a meagre upside potential of less than one percent from the stock's Monday closing price.

KIE remains sceptical of the sustainability of ABB India's sharp gross margin expansion in 2022. "The 200 basis point on year gross margin expansion and low 10 days of working capital that yields a near 37 percent post-tax return on invested capital for ABB in 2022 may be hard to sustain and grow . This represents a downside risk to our unchanged estimates," the brokerage firm highlighted in its report.

On top of that, the ABB India's sharp upside rally of around 22 percent in the year so far makes the case for an impending correction even stronger according to the brokerage firm.

India Forecasts Normal Monsoon, Easing Worries Over Crop Outlook

India, which relies on rain for the vast share of its water, forecast that the monsoon will be normal this year, potentially easing concerns over the impact on agriculture production and economic growth. Showers during the June-September rainy season is likely to be 96% of a long-term average, according to the official India Meteorological Department. Hundreds of millions of farmers across India depend on the annual monsoon to nourish their fields. Bountiful rains may boost production of crops like rice, soybeans, corn and sugar cane, lowering food prices and aiding the government’s efforts to cool inflation. The IMD prediction is at odds with the outlook from Skymet. The private weather forecaster on Monday predicted a below-average monsoon, saying the coming season is likely to bring only 94% of the rain the country usually gets from June to September. (Bloomberg reported this news)

Market at 1 PM

Benchmark indices were trading higher amid volatility.

The Sensex was up 155.79 points or 0.26 percentat 60,002.30, and the Nifty was up 56.30 points or 0.32percentat 17,680.30. About 1,893 shares advanced, 1,334 shares declined, and 88 shares were unchanged.

Oil rises on China stimulus expectations, weaker dollar

Oil prices rose on Tuesday on expectations of potential economic stimulus by China, healthy demand in the rest of Asia and a drop in U.S. crude stockpiles.

Brent crude futures rose 64 cents, or 0.8%, to $84.82 a barrel at 0557 GMT, while U.S. West Texas Intermediate futures gained 67 cents, or 0.8%, to $80.41 a barrel.

Gold gains on softer dollar as traders await US inflation data

Gold prices advanced on Tuesday after falling over 1% in the previous session, as the dollar eased ahead of key U.S. inflation data.

Spot gold was up 0.5% at $1,999.09 per ounce, as of 0649 GMT. U.S. gold futures rose 0.5% to $2,014.40.

Morgan Stanley View On JSW Steel

-Underweight rating, target at Rs 545 per share
-Consolidated production volumes were at 6.77 mt during Q4FY23
-FY23 volumes were 24.57 mt versus management guidance of 25.0 mt
-Company achieved its consolidated India operations production guidance
-Management expected to miss production guidance slightly given JISPL & Ohio business

JSW Steel was quoting at Rs 703.70, up Rs 14.95, or 2.17 percent.

Macquarie view on Cement cos

-Robust demand and input cost moderation-led price improvement drives constructive outlook

-Not factoring cement price increase in FY24; Upside risk remains

-Ultratech Cement: Outperform rating, target raised to Rs 8,498 per share;Top pick

-Dalmia Bharat: Outperform rating, target raised to Rs 2,260 per share

-Ramco Cement: Neutral rating, Target raised to Rs 788 per share

Morgan Stanley On Bank Of Baroda 

-Overweight rating, target at Rs 220 per share
-Domestic loan growth remains strong driven by acceleration in domestic retail
-Overseas loans grew 6 percent versus 4 percent last quarter
-Domestic deposit growth was steady
-CASA growth accelerated, while term deposit growth moderated

Ugro Capital to issue shares upto Rs 240 crore to Danish Sustainable Development

Ugro Capital board subject to the approval of the shareholders, approved raising of funds through issue of equity shares aggregating upto Rs 240,00,00,000 to Danish Sustainable Development Goals Investment Fund K/S, Investor on a preferential basis.

Ugro Capital was quoting at Rs 159.90, down Rs 0.10, or 0.06 percent on the BSE.

Nagarjuna Fertilizers resumes urea production in Kakinada plant

Nagarjuna Fertilizers and Chemicals has restarted its urea production in Plant - II, at Kakinada in Andhra Pradesh. The production has been stabilised on April 9.

Market

Benchmark indices erased some of the intraday gains but still trading higher with Nifty around 17700.

The Sensex was up 200.80 points or 0.34percentat 60,047.31, and the Nifty was up 63.50 points or 0.36percentat 17,687.50. About 1,965 shares advanced, 1,220 shares declined, and 80 shares were unchanged.