Closing Bell: Nifty at 22,750, Sensex up 350 pts; FMCG, metal, oil & gas rally

Indian benchmark indices ended higher on April 10 with Nifty hitting fresh record high. At close, the Sensex was up 354.45 points or 0.47 percent at 75,038.15, and the Nifty was up 111.00 points or 0.49 percent at 22,753.80.

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The Indian rupee remained relatively stable, recording minor gains of 0.02 at 83.22. This sideways trend persisted, with the dollar index awaiting fresh triggers from the upcoming US CPI numbers scheduled for Wednesday evening. The strength of the Indian economy is expected to support the rupee, while global geopolitical tensions may exert pressure. Rupee's support levels are anticipated at 83.45-83.55, with resistance levels at 83.15-83.20.

Markets edged higher and gained nearly half a percent, in continuation of the prevailing trend. After the initial gap-up move, Nifty remained range bound for most of the session and finally settled at 22,753.80 levels. Meanwhile, the majority of sectors were aligned with the move wherein FMCG, metal and energy were among the top gainers. The broader indices also edged higher after two days of pause and gained in the range of 0.7%-0.9%.

The rotational buying across sectors combined with stability at the global front is helping the index to inch higher with every passing day. We are eyeing the 22,850-23,100 zone in Nifty ahead and expect the 22,350-22,500 zone would act as a strong support in case of any profit taking. The beginning of the earnings season would trigger stock-specific volatility ahead, so participants should plan their positions accordingly.

On April 10, Indian benchmark indices concluded on a positive note, with the Nifty reaching a fresh record high. At the close, the Sensex surged by 354.45 points or 0.47 percent, settling at 75,038.15, while the Nifty climbed by 111.00 points or 0.49 percent, reaching 22,753.80.

The Nifty commenced the session with a gap up opening and steadily advanced throughout the day, ultimately securing gains of approximately 111 points. Notably, it concluded above the previous swing high of 22,768.4, indicating a bullish sentiment.

Both the daily and hourly momentum indicators exhibited a positive crossover, signaling a buy opportunity. Additionally, the daily Bollinger bands displayed an expansion, suggesting increased range, and with prices trending along the upper band, the possibility of sustained upward movement in the forthcoming trading sessions is implied.

Regarding resistance levels, the immediate hurdle stands at 22,800, with further potential upside momentum likely towards 23,000. On the downside, support is observed at 22,650 – 22,600.

Analyzing the Open Interest (OI) data, the call side exhibits the highest OI at 23,000, followed by the 22,900 strike prices, serving as robust resistance levels for the Nifty. Conversely, the highest OI on the put side is observed at the 22,700 strike price, indicating a support level. This data suggests a sideways movement scenario for the Nifty.

Following the GIFT Nifty indication, Indian bourses commenced the day on a firm note around 22,700, and remained range bound till the afternoon session. A sharp uptick in the Banking and FMCG counters pushed the Index higher to settle the weekly expiry day at a record closing of 22,753.80 with gains of 111.05 points. Apart from Banking, Metal stocks contributed the most to the Index rally, and on the flip side, Pharma and Auto were the losers in today's trade. With gains of 0.97% & 0.73%, Mid and Small Caps outperform the Nifty50.

The overall chart set-up of Nifty50 is strong and indicates an extension of the current up move to achieve a psychological target of 23,000 with the downside being protected at 22,530.

The Nifty mostly remained sideways today as investors preferred to wait ahead of the US CPI inflation data, which could potentially impact rate cuts by the Fed. The resistance zone is placed at 22,700-22,750, while support is at 22,600. A decisive move above 22,750 might induce a rally towards 23,000 in the short term. Since the market appears to be range-bound, buying on dips and selling on rallies might prove to be a good strategy with proper stop-loss measures.

Fitch cut its outlook on China's sovereign credit rating to negative on Wednesday, citing risks to public finances as the economy faces increasing uncertainty in its shift to new growth models.

The outlook downgrade follows a similar move by Moody's in December and comes as Beijing ratchets up efforts to spur a feeble post-COVID recovery in the world's second-largest economy with fiscal and monetary support.

The Bank Nifty index remained in consolidation mode at elevated levels, struggling to close above the 49,000 mark. Immediate support rests at 48,500, with resistance at 49,000. Any decisive move beyond these levels is expected to trigger trending moves. The index maintains a buy-on-dip stance, with 48,500 acting as a crucial support level to cushion against any downturns.

Indian markets sustained their upward momentum, buoyed by a robust performance in the broader market, albeit slightly lagging behind its Asian and European counterparts. Investor attention remains fixated on the impending release of the FOMC minutes and US inflation data later today. Following the release of strong US job data, market sentiments are inclined towards an anticipation of spike inflation, thereby reducing the likelihood of a near-term rate cut. Additionally, Fitch's recent downgrade of China's credit rating could potentially reverberate through the global economy, warranting a caution.

Indian rupee ended 12 paise higher at 83.19 per dollar on Wednesday versus Monday's close of 83.31.

: Indian benchmark indices ended higher on April 10 with Nifty hitting fresh record high.

At close, the Sensex was up 354.45 points or 0.47 percent at 75,038.15, and the Nifty was up 111.00 points or 0.49 percent at 22,753.80. About 1761 shares advanced, 1617 shares declined, and 81 shares unchanged.

Top gainers on the Nifty included Coal India, BPCL, Kotak Mahindra Bank, ITC and Hindalco Industries, while losers were Cipla, Maruti Suzuki, HDFC Life, Divis Labs and SBI Life Insurance.

Except pharma, all other sectoral indices ended in the green with media, PSU Bank, FMCG, metal, oil & gas up 1-2 percent.

BSE Midcap and Smallcap indices up 0.5 percent each.

Piramal Pharma Limited’s Consumer Products Division (CPD) today announced its foray into men’s personal grooming category with the launch of BOHEM product range.

This includes a Hair Removal Spray, a Beard Growth Oil, and an Underarm Roll-On.

Initiate buy, target Rs 1,505 per share
Bharti Airtel is set to ride its best financial performance phase in over a decade
Best financial performance driven by tariff hike, 2G Upgradation, strong growth of enterprise
Expect return ratios to top 20%
Expect likely historic high free cash flows to drive balance sheet deleveraging
Challenges do exist as company has chosen a different 5G rollout path vs key competitors
Believe, it is unlikely to dent company’s subscriber base or growth significantly

Sensex Today | Nifty Realty index up 0.5 percent led by Phoenix Mills, Sobha, Indiabulls Real Estate

-Equal-weight call, target Rs 1,010 per share
-ICICI Lombard was not on Policybazaar's online retail platform for many years
-Investors will likely see ICICI Lombard’s entry as reinforcing PB Fintech's business model
-Remain Equal-weight on company given the expensive valuation

Indian Rupee gained 0.15% on Wednesday as domestic equities touched all-time highs and a weak US Dollar. A decline in crude oil prices also supported the Rupee. Crude oil prices declined over the past couple of session on reports that Israel withdrew its soldiers from Southern Gaza which is eased the Middle East geopolitical tensions somewhat. US Dollar eased as market participants trimmed their positions ahead of inflation data while hawkish comments from Fed officials cushioned the downside.

We expect Rupee to trade with a slight positive bias on positive tone in the domestic markets and some softness in the US Dollar. Easing of crude oil prices from higher levels may also support the domestic currency. However, any re-escalation tensions in the Middle East may cap the upside.

Traders may remain cautious ahead of inflation data and FOMC meeting minutes from the US. A hot inflation data may lead to a bounce back in the US Dollar while softening of inflation may ease the greenback further. USDINR spot price is expected to trade in a range of Rs 82.90 to Rs 83.40.

Sensex Today | Nifty hits Fresh Record High

-Buy call, target raised to Rs 3,175 per share
-Record pre-sales in Q4 of Rs 9,500 crore drove FY24 pre-sales, highest among listed developers
-Timely land acquisitions, & Hyderabad entry imply FY25 can see growth over high base
-ASPs 55% higher over FY22-24; & company’s take rate up 30% to approximately 83%
-Expect a much higher margin post execution of the new projects
-Stock trades at 18x 1-year forward implied PE to devco profits

Shanghai bourse imposes trade limits in Gold, Crude Oil Futures: Bloomberg

Sensex Today | Market at 3 PM

The Sensex was up 324.93 points or 0.44 percent at 75,008.63, and the Nifty was up 100.30 points or 0.44 percent at 22,743.10. About 1713 shares advanced, 1541 shares declined, and 92 shares unchanged.

Aditya Vision has informed that Uttar Pradesh State GST has revoked its earlier order of INS 2 (order of seizure) for 7 temporary warehouses and INS 3 (order of prohibition) for 3 stores.

As a result, the operation of all Showrooms and warehouses in Uttar Pradesh has been restored to normalcy.

Sensex Today | Nifty Auto index down 0.2 percent dragged by Maruti Suzuki, M&M, Hero MotoCorp

Reliance Infrastructure clarify that the Order dated April 10, 2024 passed by the Hon’ble Supreme Court does not impose any liability on the company and the company has not received any money from DMRC / DAMEPL under the arbitral award.

-Upgrade to buy, target Rs 4,300 per share
-New products likely to be key growth drivers
-Expect ADTV in options segment to increase to Rs 1.5 lakh crore in FY25
-Our sensitivity analysis yields 7% rise in EPS for every Rs 10,000 crore additional ADTV in options
Expect company to deliver an FY24-26 revenue/EBITDA/PAT CAGR of 28%/ 205%/157%

Sensex Today | Nifty Bank crosses 49,000 for the first time

The dollar edged higher on Wednesday ahead of a key inflation report later in the day, while the yen remained near multi-decade lows, keeping traders on alert for signs Japanese authorities could intervene to prop up the currency.

-Sell call, target Rs 5 per share
-Loss of 1.7 million subscribers in 12 months, pending USD 2.4 billion equity raise & AGR relief
Subs loss is due to low capex of Rs 1,300 crore/USD 0.2 billion over 9MFY24
Meanwhile equity raising of up to Rs 20,000 crore is pending & will boost capex
Board has approved the preferential allotment of Rs 2,080 crore to a Birla Group Entity
Company will face a financial crunch in FY26 when annual spectrum & AGR payments will be due
Company will face financial crunch unless government converts debt principal to equity at end of moratorium

Sensex Today | BSE Smallcap index up 0.5 percent supported by Data Patterns, Ramco Systems, Foods and Inns

-Underperform call, target raised to Rs 250 per share
-Scenario analysis suggests that after a sharp YTD rally, stock trades at 6% FCF yield
-To fully capture potential improvement in growth it may witness if Voda network expands
-Tower/tenancy growth outlook likely to remain soft, which limits valuation upside
-See downside from current level even after assuming better FCF conversion

Ankur Mitra has resigned as Chief Financial Officer (CFO) and key managerial personnel of RattanIndia Power, with effect from April 9. The board has appointed Manish Ratnakar Chitnis as Chief Financial Officer of the company from the same date. Further, Gaurav Toshkhani is appointed as Company Secretary (CS) and key managerial personnel of the company with immediate effect, in place of Lalit Narayan Mathpati.

Shyam Metalics and Energy has established a new stainless steel hot rolled coils (HRC) facility at the existing plant in Sambalpur, Odisha as a part of its expansion plan. The new facility, with an increased capacity of 0.3 million metric tons per annum (MTPA), will specialize in the production of 200 and 400 series stainless steel hot rolled coils by utilizing captive raw materials.

Net equity inflow at Rs 22,691 versus Rs 26,703.06 crore
Liquid fund outflow at Rs 1.58 lakh crore versus inflow of Rs 83,642.33 crore
Hybrid fund inflow at Rs 5,584 crore versus Rs 18,105.08 crore

Sensex Today | BSE Bank index up 0.5 percent supported by Kotak Mahindra Bank, IDFC First Bank, Bank of Baroda

Gopal Khaitan has resigned as Principal Officer – PMS and senior managerial personnel of Nippon Life India Asset Management, to pursue his interests outside the company, with effect from April 9. Gurbir Singh Chopra will be taking charge as Principal Officer - PMS, with effect from April 10.

Associate entity Paytm Payments Bank informed One 97 Communication that Surinder Chawla has resigned as Managing Director and CEO of Paytm Payments Bank due to personal reasons and to explore better career prospects. He will be relieved from Paytm Payments Bank with effect from June 26. As per the company's disclosure on March 1, 2024, nearly all agreements between the company and Paytm Payments Bank have been terminated.

The United States Food and Drug Administration (US FDA) inspected the API facility of Shivalik Rasayan at Dahej in Gujarat, during April 1 and April 9 this year. The US FDA closed inspection with 7 observations. These observations are procedural in nature.

Paisalo Digital said assets under management (AUM) grew by 32% to Rs 4,622 crore at the end of March FY24 quarter, while disbursements increased 38% to Rs 3,588 crore, and the co-lending loan disbursement grew by 100% to Rs 1,128 crore during the same period. Customer franchise at the end of March FY24 quarter stood at 4.29 million as compared to 1.50 million at the end of March FY23 quarter.

Sensex Today | Market at 1 PM

The Sensex was up 190.88 points or 0.26 percent at 74,874.58, and the Nifty was up 53.90 points or 0.24 percent at 22,696.70. About 1623 shares advanced, 1584 shares declined, and 86 shares unchanged.

IRCTC has given a breakout from the Bullish Flag and Pole formation which was confirmed with a falling trendline breakout in RSI and an upsurge in Volume. Trend following indicators are supporting the price movement as MACD is on the verge of giving a positive crossover while a reading of 43 in ADX indicates the presence of a strong uptrend. As per the pattern, the target is Rs 1270. We have already initiated a positional call on the stock on 1st April at Rs 962 for the target of Rs 1034 (achieved) followed by Rs 1106.

Sensex Today | Oil rises as Middle East worries offset US crude stock buildup

Oil prices rose on Wednesday after two straight days of losses, as the deadlock in Gaza ceasefire talks renewed uncertainty about the security of supplies from the Middle East, offsetting a bigger-than-expected build in U.S. crude inventories.

Brent crude futures were up 25 cents at $89.67 per barrel at 0650 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose 24 cents to $85.47.

Q4 total global wholesales up 8% YoY at 3.77 lakh units
Q4 Commercial Vehicles & Tata Daewoo sales down 6% YoY at 1.11 lakh units

-Upgrade to buy from underperform, target raised to Rs 390 from Rs 260 per share
-Company well-placed to benefit from commodity upcycle, given its diversified exposure
-Efforts to raise capacity & profitability across segments augurs well
Company guided for group EBITDA to rise from USD 5 billion to USD 6 billion/ USD 7.5 billion by FY25/27
-While debt at parent co has now declined meaningfully, leverage at company has increased
-Leverage trajectory & corporate structure will be key to watch

Sensex Today | BSE Commodities Index touched fresh high of 7041.8

Aditya Birla Fashion and Retail has incorporated new company Aditya Birla Lifestyle Brands (ABLBL). The incorporation of new company is for proposed demerger of Madura Fashion and lifestyle business of the company.

Sensex Today | Nifty Midcap 100 index touched fresh high

Sensex Today | BSE Midcap index rose nearly 1 percent led by Petronet LNG, NMDC, Container Corporation

The dollar consolidated on Wednesday ahead of a key inflation report later in the day, while the yen remained a whisker away from what markets believe to be the line in the sand for Japanese authorities to intervene.

Sensex Today | Market at 12 PM

The Sensex was up 169.25 points or 0.23 percent at 74,852.95, and the Nifty was up 48.90 points or 0.22 percent at 22,691.70. About 1537 shares advanced, 1625 shares declined, and 86 shares unchanged.

The observations range from cleanliness to equipment qualification procedures

US-based private equity firm TPG Asia VII SF Pte sold 56,54,972 equity shares (equivalent to 1.93% of paid-up equity) of Five-Star Business Finance at an average price of Rs 752.02 per share, via open market transactions, which amounted to Rs 425.26 crore. TPG held 11.22% stake in the company as of December 2023.

Sensex Today | BSE Energy index rose 2 percent led by Petronet LNG, Aegis Logistics, Sandur Manganes

Nicomac Machinery, an entity connected to the former promoter of Gland Pharma Dr Ravi Penmetsa, sold 19,55,452 equity shares (equivalent to 1.18% of paid-up equity) in the pharma company at an average price of Rs 1,735.31 per share. Lakumi Trust offloaded 61,65,486 equity shares (3.7% of paid-up equity) at an average price of Rs 1,739.1 per share.

Sensex Today | Nifty Bank index touched fresh high

Sensex Today | Market at 11 AM

The Sensex was up 214.87 points or 0.29 percent at 74,898.57, and the Nifty was up 59.80 points or 0.26 percent at 22,702.60. About 1621 shares advanced, 1460 shares declined, and 97 shares unchanged.

Exide Industries has entered into an agreement for acquiring 26% equity stake in Clean Max Arcadia, a special purpose vehicle (SPV) promoted and incorporated by Clean Max Enviro Energy Solutions, for generation and supply of solar power. Through SPV, the company will promote renewable energy on long term basis by qualifying as a captive consumer for solar capacity of 14.85 MWp for factory at Bawal in Haryana.