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Taking Stock | Positive global cues, RIL & HUL lift Indian indices

Volatility is expected to continue in the short term due to weakening global trade. Hence, investors should have rational expectations focusing on domestic growth sectors like CAPEX, banking, and defensive, say experts.

April 28, 2022 / 05:02 PM IST
Stock Market Today:

Stock Market Today:

The Indian equity benchmarks were on a roll on April 28 propelled by positive global cues, continued investor interest in Reliance Industries (RIL) which became the first Indian company to cross $250 billion market cap, and a strong showing by Hindustan Unilever Ltd (HUL) in Q4FY22.

The 30-pack BSE Sensex came within the striking distance of the psychological 57,800-mark before paring gains and closed the day with a gain of 701.67 points or 1.23 percent up at 57,521.06.

All sectors took part in today’s rally that helped the Nifty close 206.65 points or 1.21 percent higher at 17,245.05 levels.

The Indian market reacted positively to global cues in the morning as Asian peers traded positive after the Bank of Japan kept the interest rates steady, as the Sensex opened 476.92 points higher; however, it pared most of the gains to touch an intra-day low of 56,936.94.

Strong buying in Energy and FMCG led by RIL and HUL stocks lifted the markets higher from the second hour of the trade as it touched the day’s high of 57,790.85. Profit booking in the last 30 minutes of the session caused Sensex to erase some of the gains made earlier.

Close

The Nifty opened 151.1 points higher and touched the day’s low of 17,071.05 before rallying 251.45 points to a high of 17,322.5.

“Investors preference is shifting to safe-haven assets due to volatile equity market and global uncertainties indicated by rising US Dollar index”, said Vinod Nair, Head of Research at Geojit Financial Services.

FPIs are in a selling mode while domestic investors are positive and will focus on defensives like Consumption and domestic growth sectors like Infra & capital goods, Nair added.

IndexPricesChangeChange%
Sensex54,252.53503.27 +0.94%
Nifty 5016,170.15144.35 +0.90%
Nifty Bank35,094.90755.40 +2.20%
Nifty 50 16,170.15 144.35 (0.90%)
Thu, May 26, 2022
Biggest GainerPricesChangeChange%
Tata Steel1,052.0052.90 +5.29%
Biggest LoserPricesChangeChange%
ITC266.70-6.00 -2.20%
Best SectorPricesChangeChange%
Nifty PSU Bank2501.8576.65 +3.16%
Worst SectorPricesChangeChange%
Nifty FMCG37849.20-81.75 -0.22%

“Volatility is expected to continue in the short-term due to weakening global trade and we suggest investors have rational expectations focusing on domestic growth sectors like CAPEX, banking, and defensives”.

Stocks & Sectors

Nifty FMCG was the top gainer of the day among sectors as it gained 2.19 percent, aided by stocks such as HUL (+4.55 percent), and Godrej Agrovet (+10.5 percent), and Cupid (+8.46 percent). The better than expected results declared by HUL on April 27 helped brought back some investor confidence in the sector.

Nifty IT, Banks, and Pharma each gained close to 1 percent. All other sectors also gained except Nifty Media which was down 3.15 percent.

The India VIX, which indicates the degree of volatility traders expect over the next 30 days, edged lower by 5.95 percent from 20.6 levels to 19.38.

The broader markets followed the tone set by the major sectoral indices and posted healthy gains today. The BSE Midcap index closed the day 0.83 percent higher while BSE Smallcap gained 0.12 percent.

HUL, HDFC Life, SBI Life Insurance, UPL, and Asian Paints were the top gainers on the Nifty gaining between 3.1 to 4.5 percent.

On the losing side, Bajaj Auto, Hindalco, Bharti Airtel, M&M, and HCL Tech were the top Nifty losers, declining between 0.28 to 1.8 percent.

Among specific stocks, the long build-up was seen in Coromandel Cement, JK Cement, and HUL while the short build-up was witnessed in Dr Lal Pathlabs, Balkrishna Industries and Laurus Labs.

Outlook for April 29

Prashanth Tapse, Vice President (Research), Mehta Equities Ltd

Short covering backed with fear of missing out (FOMO) ruled traders’ mindset. After a hesitant gap-up open, the benchmark Nifty staged a further smart recovery amidst bargain hunting backed by short covering.

The positive takeaway was that the Nifty ended above its 200-DMA as HUL led from the front, up 4.40% as the street feels HUL is relatively better placed to fight the inflation woes. Reliance Industries, too, was a star performer scaling a fresh record high at 2,851.

Nifty bulls will aim to carry forward the positive baton to tomorrow’s trading session and the next week with an immediate goalpost at 17,607 and then at the psychological 18,000-mark. Technically speaking, the ongoing massive short-covering shall continue as long as Nifty’s 17,807-17,000 support zone holds.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd

A smart pullback rally on the last day of April F&O expiry series helped the markets rebound amidst wild intra-day gyrations during the week. Volatility is beginning to be the new normal for investors as a haze over rising inflation, possible interest rate hikes and fluctuating oil prices have kept equity as an asset class on tight leash. If the trend continues, investors may have to brace for more volatility in the new F&O series as well.

The Nifty took support near 17,070 and bounced back sharply thereafter. The index has re-claimed the level of the 200-day SMA and has also formed a long bullish candle on daily charts, which is indicating the continuation of an uptrend formation in the near future. For the trend following traders, now the 200-day SMA or 17,200 would act as a trend decider level. And above the same, the Nifty could rally till 17,400-17,450. On the flip side, below 17200, the uptrend could be vulnerable and a strong possibility of quick intraday correction till 17,100-17,050 is not ruled out.

Disclaimer: The views and investment tips of investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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Gaurav Sharma
first published: Apr 28, 2022 05:02 pm
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