Closing Bell: Nifty ends above 14,850, Sensex jumps 789 pts led by financials

Taking Stock: Bulls Tighten Grip, Market Up 1.5%; All Eyes On Fed Meet Outcome

Except metal and pharma, all other sectoral indices ended in the green. BSE midcap and smallcap indices rose 0.7-1 percent.

Market sentiment has been boosted by a set of strong results and continuing strong momentum in global markets, which has over-shadowed concerns over economic activity arising from renewed lockdowns and the second wave of covid-19 infections. Market-wide futures rollover has been strong with the median basis holding close to fair level of 42-43 bps, while roll proportion is strong at 60%.

Metals & Banking sectors in particular have seen renewed long open interest build-up, while IT sector has lagged in a case of rotation of positioning. Mid-cap out-performance, which is a theme that has been in play for the last 6 months, continues to play out. Barring any further widespread impact of covid infections and resultant lockdowns in Tier 2 & Tier 3 cities, Nifty can be expected to trade towards its life high in May.

Markets extended gains for the third consecutive session, in continuation to prevailing buoyancy around the earnings season. Despite caution amongst global peers ahead of the FOMC meet, the benchmark opened gap-up and continues to surge higher. The earnings outcome of companies in the banking and auto space (thanks to Axis Bank and TVS motors) led the up move as it further boosted investor’s confidence. Consequently, the Nifty ended higher by 1.4% at 14,865 levels. The broader markets too ended in positive in the range of 0.7-0.8%. Barring healthcare, metals and capital goods, all sectoral indices ended in the green.

Markets will first react to FOMC meet outcome in early trade on Thursday and then focus would shift to the monthly derivatives expiry and earnings. On the earnings front, companies such as Bajaj Auto, Titan and HUL will announce their numbers during the day which will further add to the volatility. We reiterate our positive yet cautious view on markets and expect Nifty to test the 15,000 zone. Meanwhile, traders should maintain extra focus on the selection of stocks and prefer hedged bets, especially for the overnight trades.

One more gap up session with open & low same hit the fresh breakouts on the daily chart and closed a day at 14850 with good gains of one & half percent. The index has given descending channel pattern breakout on the daily chart which hints if current levels are held then we may see good northward move in the near term.

The immediate support is shifted to 14750-14650 zone & resistance is placed at 14950-15000 zone, also fresh breakout again can be seen above 15k mark which acted previously as strong hurdle.

It is an eventful day, with Fed policy and Biden's session of Congress. Ahead of both these events, dollar index is showing tentative signs of recovering, however, FII inflows into local stocks are weighing on USDINR spot.

Technically, USDINR spot has formed a descending channel, and if tonight's Fed message isn't as hawkish as the market is expecting then we may see a further drop in spot. 74.25 is an immediate support, until the spot remains afloat we may see prices moving towards 75 zone amid severe covid situation.

The markets have successfully closed above the 14700 level and this is a positive signal. We should now be headed to 15100. The index has a good support at 14300-14400 and as long as that holds, we could use any intra day correction or dip to buy into this market for higher targets.

Bulls went on a rampage with banks & autos especially the two-Wheeler stocks being sought after in what turned out to be a bullish session of trade through the day. The HDFC twins & Bajaj twins lent good support to the indices with the broader market displaying strength across sectors.

Superior Q4 results and vaccine optimism buoyed domestic markets to trade on a positive footing for the third consecutive day ahead of the Fed interest rate decision. Strong buying interest was seen in banking and auto stocks with enhanced business prospects which is likely to be maintained.

: Benchmark indices ended higher for the third straight session on April 28 with Nifty above 14800.

At close, the Sensex was up 789.70 points or 1.61% at 49733.84, and the Nifty was up 211.50 points or 1.44% at 14864.50. About 1730 shares have advanced, 1180 shares declined, and 170 shares are unchanged.

Bajaj Finance, IndusInd Bank, Eicher Motors, Bajaj Finserv and Kotak Mahindra Bank were among top gainers on Nifty, while losers were Britannia Industries, Hindalco Industries, Nestle, Divis Labs and HDFC Life.

Except metal and pharma, all other sectoral indices ended in the green. BSE Midcap and Smallcap indices rose 0.7-1 percent.

The market witnessed the continuation in the rally after the breakout above the level of 14550. 14900 could act as a resistance in the market. If the market breaks the level of 14900 and sustains above the level a new bullish rally will take place till the levels of 15200. The momentum indicators like RSI and MACD support the upside move and indicate potential upside from the current market level.

Rupee traded strongly on the back of increased fund flows continues into capital market mainly in the financial sector, helping rupee scale pass 74.50 and towards 74.25. Crude prices have also been stale near 66 in brent making the rupee less weak. Going ahead, rupee will be in range in 74.00-74.75 in coming sessions.