The Indian equity markets extended their winning streak for a fourth straight session on April 5, supported by capital goods, FMCG and information technology shares.
At close, the Sensex was up 582.87 points or 0.99 percent at 59,689.31, while the Nifty gained 159 points or 0.91 percent at 17,557.
After a muted start, the bulls took full control and extended the gains as the day progressed, with Sensex inching closer to 60,000 and Nifty above 17,550, intraday.
Reserve Bank of India's monetary policy Committee (MPC) is going to announce their decision on interest rates tomorrow.
"The domestic market is displaying resilience, unaffected by the weaker global peers, thanks to strong banks and NBFCs quarterly numbers and the windfall tax cut. Additionally, the recent US data revealed a softening in the labour market and declining factory orders, increasing the likelihood of a pause in rate hikes by the Federal Reserve," said Vinod Nair, Head of Research at Geojit Financial Services.
"The RBI is expected to announce a 25-basis point rate hike in its policy announcement on Thursday before taking a pause, positive for the market," he added.
Stocks and Sectors
Top gainers on the Nifty included Larsen and Toubro, Coal India, Hero MotoCorp, Bajaj Auto and HDFC, while losers included Eicher Motors, M&M, IndusInd Bank, Adani Enterprises and NTPC.
Among sectors, capital goods, FMCG and information technology indices rose 1-2 percent, while selling was seen in the auto, power and PSU banks.
The BSE midcap index ended on a flat note, while smallcap index added 1 percent.
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Ion Exchange, Varun Beverages, Abbott India, Dalmia Bharat, Aegis Logistics, Siemens, Bosch, Atul Auto, Cyient, Dr Reddy's Laboratories, Anant Raj, Pricol, SML ISUZU, were among the stocks that touched their 52-week high on the BSE.
A long build-up was seen in Indraprastha Gas, Coforge, L&T, while a short build-up was seen in Aditya Birla Fashion & Retail, Ashok Leyland and Federal Bank.
Among individual stocks, a volume spike of more than 200 percent was seen in Aditya Birla Fashion & Retail, L&T Technology Services and Coforge.
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Outlook for April 6
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
The major indices maintained their upward trend for the fourth day in a row, with the Sensex rising by 582 points and the Nifty finishing 161 points higher. IT, FMCG, and financial sector indexes all saw gains of above 1 percent, while PSU banks and auto companies experienced intraday profit booking.
Technically, after a solid start, the market maintained its upward trend throughout the day. For the first time in a long time, the Nifty closed above the 200-day SMA level and created a long bullish candle on the daily charts, both of which are generally encouraging signs.
Although, we believe that the market's short-term structure is strong, transitory overbought situations may cause some profit-taking at higher levels. The current resistance level for day traders would be 17,600-17,650/60,000-60,100, while the important support area would be 17,450-17,400/59,400-59,200. The uptrend would be at risk if it fell below the 17,400/59,200 level.
Pravesh Gour, Senior Technical Analyst, Swastika Investmart
For the first time in 2023, the market has gained four consecutive sessions. The Sensex and Nifty end the day at their highs, led by financial heavyweights and ITC. Nifty is showing bullish momentum, and closed above 17,500 and above that, we can expect a short covering move towards 17,770. On the downside, 17,300 and 17,220 are important support levels.
Banknifty is showing relative strength where 41,250 is an immediate target. Above 41,250, we can expect a rally towards 41,666, while on the downside, 40,400 and 40,200 are important to support levels.
We've seen a short-covering move, and there's still room for more short covering, but the market needs new longs with institutional investors backing them up. In the short term, key events such as RBI policy, macroeconomic data, and Q4 earnings will determine the market's direction from here.
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