Closing Bell: Nifty closes around 18,150, Sensex up 240 points; Tech Mahindra, NTPC top gainers

Indian equity markets ended higher amid mixed trend in the global markets. Nifty was up 0.5%. Broader markets out-performed the main index as Nifty Mid Cap and Nifty Small Cap were up ~1% and 0.7% respectively. All sectoral indices ended in green except Nifty Pharma (-0.2%) and Nifty FMCG (-0.1%) while Nifty Realty was largely flat. Nifty Metal (+1.4%), Nifty Oil & Gas (+1.2%) and Nifty IT (+1.1%) were the major gainers.

The U.S. stocks were muted on a day when most markets in Europe and Asia were closed for a holiday. The S&P 500 closed flat, while the technology-heavy Nasdaq and the Dow Jones ended 0.1% lower. Shares of US regional banks fell on Monday after regulators mobilised a deal for JPMorgan Chase to buy struggling lender First Republic. The benchmark 10-year yield rose 0.13 percentage points to 3.59%. Meanwhile, Fed is expected to deliver a quarter-point rate rise after its meeting on Wednesday, taking its target range to 5-5.25%, as policymakers continue to tackle rapid consumer price rises.

The March 2023 quarter results season began on a cautious note. Large IT companies reported weak results and indicated substantial revenue growth moderation in FY24. The coming week will see more results from large companies. With April coming to an end, markets will closely track the monthly updates such as automobile sales and purchasing managers indices (PMI). Q4 results and data will provide vital cues about the state of the domestic market and demand. On the global front, the US Federal Reserve and the European Central Bank (ECB) will decide on interest rates. PMI, inflation and the US unemployment rate are other key data points to track.

Nifty continued its upside momentum for the sixth consecutive sessions on Tuesday and closed the day higher by 82 points amidst a range movement. After opening with an upside gap of 60 points, the market made an attempt to move up in the early part of the session. It later shifted into a narrow intraday range at the hurdle of 18200 levels and the sideways movement continued for rest of the session.

A small positive candle was formed on the daily chart with minor upper and lower shadows at the swing highs. Technically, this pattern indicates tiredness in the market after a sharp upward movement recently. Such candle patterns some time acts as a reversal or consolidation movement in the market. A decisive move below 18100-18050 levels could alert for short term downward correction in the market.

The positive chart pattern like higher tops and bottoms is on the way. After the formation of new higher bottom at the lows of 17553 on 21st April, the Nifty has been rising consistently towards the new higher top formation. Though, placed at the highs, still there is no confirmation of any higher top reversal forming yet at the highs. Immediate support is at 18080 levels and the next upside resistance to be watched at 18200 levels.

India's relatively better macro economic growth has been adding fizz to the ongoing rally, with the robust April GST numbers further providing fillip even as global markets remain sluggish to negative. Rally in IT, metals and power stocks helped benchmark indices sail above the crucial levels. Technically, the Nifty has formed a small candle while on intraday charts it is still holding higher bottom a formation which is broadly positive. In the near future, 18050-18000 would be the key support zone while 18200-18250 would act as an immediate hurdle for the bulls. However, below 18000, the uptrend would be vulnerable.

The rupee weakens throughout the day as traders and hedgers bet on the dollar ahead of the FOMC policy decision tomorrow. Spot USDINR is expected to hold support at 81.50, the 200-day simple moving average and resist at 82.30. We are expecting a short covering rally in the near term before breaking the long-term support line.This week will be a holiday-shortened as the market remains open only for three trade sessions.

Defying the trend in global peers, Indian benchmark indices continued its upward momentum, fuelled by strong Q4 earnings and favourable domestic macroeconomic data. The manufacturing PMI surpassed expectations due to an increase in new business, moderation in price pressures, and improved supply chain conditions. Additionally, the GST collection in April was the highest recorded to date. While western markets traded with mild cuts ahead of the US Fed policy announcement, the domestic market benefited from strong inflows by FIIs.

Rupee ended at 81.89 against US dollar, down 0.07% from its previous close. 10 Year bond yield closed at 7.117% from its Friday's close of 7.119%. Bond yield and prices moves in opposite directions.

According to recent data from research firm Centre for Monitoring India Economy, India's unemployment rate has reached a four-month high. This is attributed to an increase in the number of people entering the job market in comparison to the number of available jobs in the third largest economy in Asia. The national joblessness rate rose from 7.8% in March to 8.11% in April, the highest since December. Urban unemployment increased from 8.51% to 9.81% during the same period, while rural unemployment decreased slightly from 7.47% to 7.34% in April.

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The Sensex was up 292 points or 0.48 percentat 61,419, and the Nifty was up 102 points or 0.57 percent at 18,167.15. About2139 shares advanced, 1477 shares declined, and 166 shares were unchanged.

Net income Rs 97.91 crore, +21% y/y
Revenue Rs 1197 crore, +12% y/y
Total costs Rs 1070 crore, +10% y/y
Dividend per share 0.25 rupees

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