Closing Bell: Nifty closes around 18,241, Sensex zooms 556 points; Bajaj Finance, HDFC top gainers

Nifty rose for the 7th out of the past 8 sessions to close at more than four month highs on May 04. At close, Nifty was up 0.92% or 165.9 points at 18255.8. Broad market indices rose a little less than the Nifty even as the advance decline ratio remained high at 2.25:1.

Asian stock markets were mostly higher Thursday after the US Fed raised its benchmark lending rate again to cool inflation and said it wasn't sure what may come next. European stocks dropped at open as investors studied a series of earnings for clues on the state of the economy and prepared for a rates decision from the European Central Bank later Thursday, following the US Fed’s latest quarter-point hike.

Nifty build on its previous gains well on May 04. It is now headed for 18319-18432 band on the upside while 18148 could provide support on the downside for the near term.

The US Federal Reserve softening its stance over future rate hike prospects cheered investors' mood which triggered a fresh bout of buying in banking stocks. With India's growth indicators showing good signs of revival and crude oil prices staying lower, investors are betting big on local equities even as haze over global economic growth persists. Technically, the Nifty cleared the 18150 resistance mark and post breakout it intensified the positive momentum. The index has also formed a long bullish candle which supports further uptrend from the current levels. As long as the index is trading above 18150, the uptrend wave is likely to continue up to 18350-18400.

Indices in India traded higher throughout the day, closing near the day's high above 18200 points. The general outlook is positive, and the market will continue to purchase on dips until the important support level of 17950 on the downside is not breached. The levels of support moved from 17450 to 17820 and are now at 17950. Overall, the Bank Nifty outperforms the markets, remaining above 43500 and closing at 43700, with HDFCBANK and HDFC closing at new highs.

The market has traded positive with the Sensex gaining 0.91 percent and closed at 61749.25 and Nifty was positive by 0.92 percent intraday and closed at 18255.80 levels whereas Bank Nifty was up by 0.86 percent and settled at 43685.45.

All the sectors closed in green with Nifty PSU BANK, Nifty METAL and Nifty FIN SERVICES were the top gaining sectors with 1.23%, 1.22% and 1.55% respectively. In Nifty stocks, ADANI ENTERPRISE, BAJAJ FINANCE and SBI LIFE INSURANCE were the top gainers while UPL, INDUSIND BANK and NESTLE were the prime laggards.

INDIA VIX was down by 0.93 percent intraday and settled at 11.73.

Volume profile indicates Index has a strong support around 17950-18050 zone. Coming to the OI Data, on the call side, the highest OI observed at 18400 followed by 18500 strike prices while on the put side, the highest OI is at 18200 strike price. On the other hand, Bank nifty has support at 43100-43300 while resistance is placed at the all-time high levels of 44150-44300 range.

Markets edged higher on the weekly expiry day and gained nearly a percent. After the flat start, the Nifty index gradually inched higher and settled closer to the day’s high at 18,255.80 levels. Meanwhile, a mixed trend was witnessed on the sectoral front wherein financials and metal posted decent gains while realty and FMCG traded subdued. The broader indices traded in tandem with the benchmark and gained half a percent each.

The surge in the index shows more leg to the prevailing up move before it settles for some consolidation. Apart from consistent buying in banking and financial majors, the rotational participation from other sectors is fueling the recovery now. We thus recommend aligning positions according to the trend, with a focus on stock selection.

Indian equity markets snubbed US market weakness and resumed their strong bullish momentum. The fall in crude oil prices, US bond yields, and the dollar index were positive triggers for emerging markets like India. Continuous buying by FIIs for the last few days has fueled the strength in the headline indices, while the broader market is showing great strength. Technically, Nifty has taken out the key supply zone of 18181–18233, which has opened the door for Nifty highs; however, 18632-18696 will be the intermediate supply zone. On the downside, 18000 has become a longer-term base. Banknifty has also taken out the key resistance level of 43500, and it is likely to head toward its all-time high of 44151. On the downside, the 43200–43000 area will act as a demand zone.

India's benchmark Sensex gained 0.91 percent or 555.95 points to close at 61749.25 points while Nifty rose 0.92 percent or 165.95 points to 18255.80 points.

Among sectoral indices all sectors ended higher except Nifty FMCG which fell 0.13 percent . Nifty Financial Services was the top gainer that rose 1.55 percent followed by Nifty Metal and PSU Bank which gained 1.3 percent each.

The Indian rupee erased most of its gains and closed marginally higher against the US dollar. The currency closed at 81.80, up 0.04 percent from its previous close of 81.83 a dollar. The home currency opened at 81.68 and touched a high of 81.66 a dollar.

The 10 year bond yield was trading at 7.028%, up 2 basis points from its previous close of 7.007%.

Dabur continues to navigate a difficult inflationary environment while also growing market share in key categories. Gross margins remain under pressure with a decline of 271bps YoY/474bps QoQ to 45.8%. We expect inflationary pressure to remain in the near term which will lead to delay in margin recovery. We have an Accumulate rating on the stock with a TP of Rs589.The stock trades at 38.4x FY25 EPS.

18 companies see increase in stake by promoters, FIIs, DIIs in March quarter

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Net profit at Rs 9 cr vs Rs 1 cr (YoY)

Revenue up 27.3% at Rs 433.7 cr vs Rs 340.6 cr (YoY)

EBITDA at Rs 32.9 cr vs Rs 16.2 cr (YoY)

Margin at 7.6% vs 4.8% (YoY)

Centrum has mained its Reduce rating on Havells India and revised target price of Rs 1130 due to stretched valuations, and the expected losses in Lloyd that will likely limit earnings. To gauge the situation accurately, it's crucial to keep an eye on the recovery of electrical margins and consumer demand. The brokerage expects Havells India to post 14% revenue CAGR over FY23-25E while earnings CAGR will be 25% on a suppressed base (FY22-FY25E will be 12% CAGR).

Nuvoco Vistas Corp gained 1.6 percent to Rs 333.75 after a huge block deal. Around 1.27 million shares of the company changed hands in a bunch of trades, according to Bloomberg. However, details of the buyers and sellers were not known.