The Indian market snapped a two-day losing streak and closed more than a percent higher on April 25, supported by positive global cues. The Sensex rose 776.72 points, or 1.37 percent, to end the day at 57,356.61, while the Nifty was up 246.80 points, or 1.46 percent, at 17,200.80.
"Benchmark indices gained one and a half percentage points today on expectations of record GST collections for April even as FII ownership dropped to multi-year lows at 20 percent," said S Ranganathan, Head of Research at LKP Securities.
Bajaj Group stocks, autos and real estate stocks staged a smart recovery, with almost all sectoral indices ending in the green, he said.
“FIIs continue to be the second-highest owners of financials in India after the GoI despite the sector seeing the highest FII selling during the last one year," Ranganathan said.
The broader markets witnessed buying interest in footwear stocks with half-a-dozen listed entities gaining shares in both the value for money as well as aspirational brands.
“Earnings expectations also buoyed stocks of state-run enterprises of Gujarat in today's trade," Ranganathan added.
Bajaj Auto, Adani Ports, Hero MotoCorp, Power Grid Corp and M&M were among the top Nifty gainers, while losers included ONGC, Apollo Hospitals, Axis Bank, Hindalco Industries and Asian Paints.
On the sectoral front, Nifty auto, energy, PSU bank indices gained 2 percent each and FMCG, metal and pharma indices were up a percent each.
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 54,252.53 | 503.27 | +0.94% |
| Nifty 50 | 16,170.15 | 144.35 | +0.90% |
| Nifty Bank | 35,094.90 | 755.40 | +2.20% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Tata Steel | 1,052.00 | 52.90 | +5.29% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| ITC | 266.70 | -6.00 | -2.20% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty PSU Bank | 2501.85 | 76.65 | +3.16% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty FMCG | 37849.20 | -81.75 | -0.22% |
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Stocks and sectors
On the BSE, all sectoral indices ended in the green, with auto, realty and power gaining 2-3 percent, while capital goods, FMCG, oil & gas indices rose over 1.5 percent each.
BSE midcap and smallcap indices rose 0.7-1.6 percent.
A long build-up was seen in Cholamandalam Investment and Finance Company, Apollo Tyres and Indiabulls Housing, while a short build-up was seen in the Atul, Laurus Lab and Intellect Design Arena.
More than 150 stocks, including Adani Ports, Network18 Media & Investments, Page Industries, OnMobile Global, touched their 52-week high on the BSE.
Among individual stocks, a volume spike of more than 100 percent was seen in Atul, Sun Pharma and TVS Motor.
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Outlook for April 27
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
While markets are in an oversold position, the falling yields in US markets and sliding crude oil prices came as major respite for investors who partially covered their short positions.
However, concerns like China's coronavirus outbreak, likely interest rate hike in the US and the Russia and Ukraine war will continue to be potential market spoilers.
Technically, the Nifty again claimed the vital 17,000-mark and closed above the 50-day SMA, a positive for the market.
After a promising pullback rally, the index is trading near the 200-day SMA. For short-term traders, the support has shifted to 17,100 from 17,000.
We are of the view that the intraday formation is positive and it is heading towards 17,300-17,350.
On the flip side, a quick intraday correction is not ruled out if the index trades below 17,100 and below the same, it may retest 17,050-17,000.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty provided some breathing space to the bulls on April 26. With the bounce, the index filled up the recent gap area of 17,054–17,149. It halted near a falling trendline on the hourly chart, which is around 17,200.
The key daily moving averages are standing as barriers near 17,200-17,400. The overall structure suggests that the index is trading near its short-term hurdles and can slip again in the coming sessions.
On the downside, the Nifty can test the swing low of 16,824. This bearish stance will hold as long as the index trades below the swing high of 17,415.
Ajit Mishra, VP-Research, Religare Broking
Markets rebounded sharply and gained nearly one and a half percent following supportive global cues.
After a gap-up start, the benchmark traded in a volatile range, however, buoyancy on the broader front kept the participants occupied till the end.
Though markets are not offering any cue to the next directional move, the sustainability of the 16,800 zone is keeping bulls’ hopes alive.
Participants should continue with a cautious approach and focus on risk management until the Nifty decisively closes above 17,400.
Among the sectors, auto looks upbeat and select stocks from energy and FMCG pack are also seeing decent traction, so plan your positions accordingly.
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