Taking Stock: Nifty inches closer to 20,000, Sensex up 474 pts; IT underperform
Top gainers on the Nifty included ITC, Kotak Mahindra Bank, Dr Reddy’s Laboratories, ICICI Bank and Cipla.... Read More
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 84,211.88 | -344.52 | -0.41% |
| Nifty 50 | 25,795.15 | -96.25 | -0.37% |
| Nifty Bank | 57,699.60 | -378.45 | -0.65% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Hindalco | 824.45 | 32.05 | +4.04% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Cipla | 1,584.40 | -60.70 | -3.69% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Metal | 10347.50 | 105.60 | +1.03% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty FMCG | 56348.10 | -424.30 | -0.75% |
Markets edged higher on the weekly expiry day and gained over half a percent. After the initial dip, Nifty traded volatile in the early hours but noticeable buying in select heavyweights pushed the index closer to the new milestone of 20,000 and it eventually settled at 19,979.15 levels. Most sectors traded in tandem with the trend wherein FMCG, pharma and banking were among the top gainers. The broader indices too followed suit and ended with modest gains.
We may see some consolidation in the following session citing the psychological hurdle of a new milestone and overbought positions. However, rotational buying across sectors would keep the tone positive. Participants should align their positions accordingly and look for buying opportunities on dips.
The Nifty broke out of the two-day consolidation on the upside and closed with gains of ~146 points. On the daily charts, we can observe that the Nifty has resumed its upmove after a brief consolidation. On the upside we expect Nifty to target levels of 20200 from a short-term perspective.
The daily and hourly momentum indicators are having a positive crossover and are in sync with the price action. Thus, both price and momentum indicators are suggesting a continuation of the current upmove.
We shall continue to maintain a positive outlook on the index. In terms of levels, 19880 – 19850 shall act as a crucial support zone as per the principle of role reversal, and on the upside 20150 – 20200 shall act as an immediate hurdle zone and our short-term target zone.
Bank Nifty witnessed a breakout from the inside bar pattern on the upside and also witnessed follow-through buying interest. The daily and the hourly momentum indicator also have a positive crossover. Thus, both price and momentum indicators are suggesting a continuation of the upmove and expect the Bank Nifty to target levels of 46500.
The index Bank Nifty is currently experiencing a strong bullish trend, with the bulls dominating the market. The index successfully surpassed the key resistance level of 46000, indicating a continuation of the upward momentum. The index is characterized by a series of "higher high and higher low formations," which is a bullish pattern that confirms the strength of the uptrend.
The support level for the index is at 45500, and as long as this level remains intact on a closing basis, the overall trend remains bullish. A break below this support level could signal a potential shift in momentum and may warrant caution for bulls.
On the upside, the next immediate hurdle is placed at the 46400-46500 zone. If the index manages to break above this resistance zone on a closing basis, it could further accelerate the upward movement, potentially opening room for higher levels.
Nifty, the headline Indian Index, recently reached a fresh all-time high, stopping just 9 points shy of the 20,000 mark. The index's value remains above the critical moving average, indicating a positive trend. Furthermore, the RSI shows a bullish crossover, suggesting potential market strength. In the short term, the index is expected to stay positive. However, if it fails to surpass the 20,000 level, investors might engage in profit-taking. There is a support level at 19,800, which could attract buying interest during potential pullbacks.
The market is witnessing frenzied buying support from foreign investors, and it's just a matter of time that the benchmark Nifty will top the 20K mark. Such has been the rally that some of the mild negative flows too are getting discounted in this bull run. Technically, after a muted opening the index took support near 19750 and reversed. On daily charts, it has formed a bullish candle and on intraday charts it is holding higher bottom formation, which is largely positive. However, the short-term texture of the market is overbought, hence we could see some profit booking at higher levels.
For the trend following traders, 19850 would be the key level to watch out for and above the same, the market could move up till 20100-20150. On the flip side, below 19850 traders may prefer to exit from long positions, as any further correction could see the index retest the level of 19750-17700.
Financials, FMCG & Healthcare fired up benchmark indices today which closed just shy of the magical 20k on the Nifty. FII's have pulled off a 700 points rally in the Nifty since 3rd of this month at the start of the earnings season for the first quarter. Virtually all sectoral indices barring IT closed in the green today.
Unlocking of value by heavy weights (like RIL & ITC) is apprising the main indices. The anticipation of a good Q1 results from Banks, is providing an extra boost to drive to new highs. Mixed cues from global peers is not disturbing the mood of the domestic market as FIIs inflows stay put to the prospects of the Indian economy.
We believe in Jio Financial Services' potential, but it is too early to discuss its future prospects and roadmap. Let us wait patiently for Reliance Industries' upcoming AGMs and results date to reveal their huge rollouts. Following the demerger, Jio Financial is now India's fifth-largest financier, set to fight directly with major NBFC and Fintech businesses.
As India's financial services sector grows, digitalization will be critical in growing the addressable market, particularly in merchant and retail loans. Jio Financial intends to use Reliance's technical capabilities to democratise access to financial services for 1.4 billion Indians. Jio Financial, with a predicted net worth of Rs 1,10,000 crore, is a prominent participant in the market, poised for transformation and future growth.
Indian rupee ended 10 paise higher at 81.99 per dollar versus previous close of 82.09.
Benchmark indices extended the gains and ended near the day's high with Nifty above 19,950.
At close, the Sensex was up 474.46 points or 0.71% at 67,571.90, and the Nifty was up 146.00 points or 0.74% at 19,979.20. About 1718 shares advanced, 1574 shares declined, and 130 shares unchanged.
Top gainers on the Nifty included ITC, Kotak Mahindra Bank, Dr Reddy’s Laboratories, ICICI Bank and Cipla, while losers were Reliance Industries, Infosys, UltraTech Cement, HCL Technologies and Bajaj Finserv.
Among sectors, FMCG, bank and pharma indices rose 1 percent each and Oil & Gas index up 0.5 percent. On the other hand, Information Technology index down 0.8 percent and power index fell 0.4 percent.
BSE Midcap and smallcap indices ended on flat note.
-Buy rating, target raised to Rs 860 per share
-Q1 beat estimates with 34% revenue growth being key highlight
-Management highlighted strong growth outlook in traditional markets, particularly among banks
-Raise EPS estimates by 2-4% & expect 23% EPS CAGR over FY23-25
-Company’s strong growth visibility & consistent execution should sustain 21x PE valuation
-Equal-weight rating, target at Rs 105 per share
-Higher-than-expected NII & fees drove a 2% PAT beat
-Higher re/pre-payments & sell-downs drove wholesale loans down faster
-Credit cost of 2.6% was higher than estimate of 2.4%
-Stage 3 assets decreased QoQ led by wholesale
