Closing Bell: Nifty at 17,200, Sensex gains 776 pts; all sectors in green

Ajit Mishra, VP - Research, Religare Broking:

Markets rebounded sharply and gained nearly one and a half percent, following supportive global cues. After the gap-up start, the benchmark traded volatile in a range however buoyancy on the broader front kept the participants occupied till the end. Eventually, the Nifty index ended positive at 17,200.8 levels; up by 1.5%. 

Though markets are not offering any cues over the next directional move yet, the sustainability of the 16,800 zone in Nifty is keeping bulls’ hope alive. 

Having said that, we feel participants should continue with a cautious approach and maintain their focus on risk management until we see a decisive close above 17,400.  Among the sectors, the auto looks upbeat and select stocks from energy and FMCG pack also seeing decent traction so plan your positions accordingly.

Vinod Nair, Head of Research at Geojit Financial Services.

Strong buying interest from domestic investors and positive global trend resulted in a rebound. But volatility persists due to lockdown in China, Russia – Ukraine war and rate hikes. 

However, dips are encouraging investors to accumulate quality stocks. 

In a range bound market, it is advised to stick with sectors which are expected to be least impacted by inflation and rising bond yield, banking, IT, Pharma and themes like green energy.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:

The Nifty provided some breathing space to the bulls on April 26, who were beaten down in the last couple of sessions. With the bounce today, the index has filled up the recent gap area of 17054 – 17149. It halted near a falling trendline on the hourly chart, which is around 17200. 

Additionally, the key daily moving averages are standing as barriers near 17200-17400 zone. The overall structure suggests that the index is trading near its short term hurdles & can slip down again in the coming sessions. 

On the downside, the Nifty can test the swing low of 16824. This bearish stance holds true as long as the index trades below the swing high of 17415. 

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

While markets are in an oversold position, the falling yields in US markets and sliding crude oil prices came as a major respite for investors who partially covered their short positions. However, other concerns like China's coronavirus problems, likely interest rate hike woes in the US and the conflict between Russia & Ukraine will continue to be potential market spoilers. 

Technically, once again the Nifty re-claimed the 17000 mark and succeeded to close above the 50-day SMA which is grossly positive for the markets. 

After a promising pullback rally the index is trading near the 200-day SMA. For the short term traders, the support has shifted to 17100 from 17000. We are of the view that the intraday formation is positive and it is heading towards 17300-17350. 

On the flip side, a quick intraday correction is not ruled out if the index trades below 17100 and below the same, it may retest the level of 17050-17000.

S Ranganathan, Head of Research at LKP securities: 

Benchmark indices gained one and a half percentage today on expectations of record GST collections for April even as FII ownership dropped to multi-year lows at 20%. 

Bajaj Group stocks, Autos & Real Estate stocks staged a smart recovery today with almost all sectoral indices ending in the Green. 

FII's continue to be the second highest owners of Financials in India after the GOI despite the sector seeing the highest FII selling during the last one year. 

The broader markets witnessed buying interest in Footwear stocks with half a dozen listed entities gaining share in both value for money as well as aspirational brands. Earnings expectations also buoyed stocks of state run enterprises of Gujarat in today's trade.

Market Close: Benchmark indices broke two-day losing streak and ended higher with Nifty back to 17200 mark.

At close, the Sensex was up 776.72 points or 1.37% at 57,356.61, and the Nifty was up 246.80 points or 1.46% at 17,200.80. About 1886 shares have advanced, 1422 shares declined, and 108 shares are unchanged.

Bajaj Auto, Adani Ports, Hero MotoCorp, Power Grid Corp and M&M were among the top Nifty gainers while losers included ONGC, Apollo Hospitals, Axis Bank, Hindalco Industries and Asian Paints.

All the sectoral indices ended in the green with auto, realty and power indices gained 2-3 percent. BSE midcap and smallcap indices rose 0.7-1.6 percent.

Norbert Rücker, Head Economics and Next Generation Research, Julius Baer:
 
The oil market remains on a roller coaster ride with prices swinging up and down sharply. The concerns around China’s pandemic struggles and its economic impacts offset the fears surrounding the supply gap left by Russia’s shunned oil, which in fact seems less severe than initially feared. 

Thanks to strategy storage releases, the petro-nations exiting their output restrictions, and the US shale business lifting production to fresh records, the oil market should ultimately cope well with Russia’s shortfall. We see lower prices in the longer term.

BSE Oil & Gas index rose 1 percent led by the Adani Total Gas, Reliance Industries, Indraprastha Gas

Sakshi Jain, Senior Research Analyst, Capitalvia Global Research:

On the strength of favourable signs from other Asian markets, the Dalal Street gained pace in the late morning session, with both the Sensex and Nifty retaining solid gains. Traders were upbeat, citing private projections claiming that real-time payments could improve India's GDP by $45.9 billion by 2026, with real-time payments transaction volumes expected to top 206 billion. 

The Ministry of Commerce and Industry also stated that since 2014, there has been a five-fold increase in patent grants and a four-fold increase in trademark registrations.

Campus Activewear IPO Updates:

The initial public offering (IPO) of Campus Activewear, the largest sports and athleisure footwear brand in India, has received bids for 2.92 crore shares against IPO size of 3.36 crore shares, getting subscribed 87 percent on April 26, the first day of subscription.

Retail investors are at the fore, buying shares 1.48 times their portion, while non-institutional investors bid for 52 percent of their quota.

The part set aside for qualified institutional investors was subscribed 9 percent while employees have bought 51,153 of the two lakh shares reserved for them.

HDFC Life Insurance Company Q4 Earnings: 

HDFC Life Insurance Company has posted Q4 consolidated net profit at Rs 506.2 crore against Rs 319.1 crore, YoY

The company’s Value of New Business (VNB) was at Rs 895 crore and VNB margin was at 29.3%.

HDFC Life Insurance Company was quoting at Rs 553.25, up Rs 13.00, or 2.41 percent on the BSE.

Buzzing:

Private sector life insurer HDFC Life Insurance Company share price is trading in the green as the company is expected to report 12 percent on year growth in consolidated net profit on April 26 when it declares results for the quarter ended March.

Experts expect the company to report a net profit of Rs 355 crore on the back of its well-balanced product mix and a strong distribution mix as well as reasonable growth in annual premium equivalent (APE). On a sequential basis, the profit is expected to jump 30 percent.

Net premium income for the HDFC group company is expected to grow 12 percent on year to Rs 14,400-14,500 crore for the quarter. On a sequential basis, growth is expected to be 20 percent. Click To Read More