All sector indices are in the green, with the auto, real estate, and power indices all up 2-3%. The BSE midcap and smallcap indices rose between 0.7 and 1.5 percent.
Markets recovered sharply and gained nearly 1%, boosted by supportive global cues. After the gap-up start, the benchmark traded in a range, but the broader market’s buoyancy kept participants occupied until the end. Finally, the Nifty index closed in the green at 17,200.8 points, up 1.5 percent.
Though markets have not yet signaled the direction of the next move, the sustainability of the 16,800 zone in the Nifty is keeping bulls hopeful.
Having said that, we believe participants should continue to exercise caution and maintain a risk-management focus until we see a decisive close above 17,400. Among the sectors, the auto sector appears to be on the rise, while select energy and consumer packaged goods stocks are also gaining traction, so plan your positions accordingly.
A rebound was triggered by strong buying interest from domestic investors and a positive global trend. However, volatility persists as a result of China’s lockdown, the Russia-Ukraine conflict, and rate hikes.
Dips, on the other hand, are encouraging investors to accumulate high-quality stocks.
In a range-bound market, it is prudent to invest in sectors that are expected to be least affected by inflation and rising bond yields, such as banking, information technology, pharmaceuticals, and themes such as green energy.
On April 26, the Nifty gave bulls some breathing room after being pummeled in the previous two sessions. With today’s rally, the index has closed the recent gap between 17054 and 17149. On the hourly chart, it came to a halt near a falling trendline near 17200.
Additionally, the pivotal daily moving averages act as barriers near the 17200-17400 area. The index’s overall structure suggests that it is trading close to its short-term hurdles and may fall further in the coming sessions.
The Nifty may test the swing low of 16824 on the downside. This bearish outlook will remain in place as long as the index remains below the swing high of 17415.
While markets are oversold, investors who partially covered their short positions received a significant boost from falling yields in US markets and sliding crude oil prices. However, other concerns such as China’s coronavirus outbreak, the US’s likely interest rate hike woes, and the Russia-Ukraine conflict will continue to be potential market disruptors.
Technically, the Nifty reclaimed the 17000 level and closed above the 50-day SMA, which is extremely bullish for the markets.
The index is trading near the 200-day SMA following a promising pullback rally. Support has shifted from 17000 to 17100 for short term traders. We believe that the intraday formation is bullish, with a target of 17300-17350.
On the other hand, if the index trades below 17100 and stays below that level, it may retest the level of 17050-17000.
Benchmark indices gained 1.5 percentage points today on expectations of record GST collections in April, despite the fact that FII ownership fell to a multi-year low of 20%.
Today, shares of the Bajaj Group, automobiles, and real estate companies staged a strong recovery, with almost all sectoral indices finishing in the green.
FIIs remain the second largest owners of Financials in India, behind the government, despite the sector experiencing the highest FII selling in the last year.
The broader markets saw increased buying interest in Footwear stocks, with a half-dozen publicly traded companies gaining market share in both value and aspirational brands. Earnings expectations also boosted the stocks of Gujarat’s state-owned enterprises in today’s trade.
Market Close: Benchmark indices ended higher after a two-day losing streak, with the Nifty returning to the 17200 level.
At the close, the Sensex had gained 776.72 points, or 1.37 percent, to 57,356.61, while the Nifty had gained 246.80 points, or 1.46 percent, to 17,200.80. Around 1886 shares have increased in value, 1422 shares have decreased in value, and 108 shares have remained unchanged.
ONGC, Apollo Hospitals, Axis Bank, Hindalco Industries, and Asian Paints were among the top gainers on the Nifty, while ONGC, Adani Ports, Hero MotoCorp, Power Grid Corp, and M&M were among the top losers.
All sectoral indices finished in the green, with the auto, real estate, and power indices gaining 2-3%. The BSE midcap and smallcap indices gained between 0.7 and 1.6 percent.
The oil market continues to be a roller coaster, with prices swinging sharply up and down. Concerns about China’s pandemic struggles and their economic consequences outweigh concerns about the supply gap created by Russia’s boycotted oil, which appears to be less severe than initially feared.
The oil market should eventually cope well with Russia’s shortfall, owing to strategic storage releases, the petro-nations lifting their output restrictions, and the US shale industry setting new production records. In the long run, we anticipate lower prices.
The Dalal Street gained momentum in the late morning session, with both the Sensex and Nifty maintaining solid gains. Traders were optimistic, citing private projections that real-time payments could boost India’s gross domestic product by $45.9 billion by 2026, with real-time payments transaction volumes expected to exceed 206 billion.
Additionally, the Ministry of Commerce and Industry stated that since 2014, patent grants have increased fivefold and trademark registrations have increased fourfold.
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