Trade Setup For April 30: Nifty To Continue Uptrend On Strong Domestic, Global Cues
The Nifty May futures were up 0.84% to 22,745.15 at a premium of 101.75 points, while the series' open interest is up 4.29%.
Analysts expect the markets to continue its positive trend, with the NSE Nifty 50 having crossed the important resistance and a healthy earning season and macro data.
From a technical standpoint, the index is suggesting strength as it has crossed the hurdle of 22,630 and managed to close above it, according to Neeraj Sharma, assistant vice president of technical and derivatives Research at Asit C Mehta Investment Interrmediates Ltd. "The Nifty could attempt to break its all-time high of 22,776, and if the index sustains above it, the rally could stretch towards 23,000–23,100 levels."
The Bank Nifty may test the levels of 50,000 in the short term as the index has closed above the resistance of 48,500 and has almost achieved the short-term targets, Sharma said.
The Nifty will continue its positive trend on the back of a healthy earnings season and macro data, Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Ltd. said. Investors will watch out for European consumer confidence data, and China manufacturing and non-manufacturing data on the economic front.
Investors should maintain a long position, given the expected levels that the index might reach, according to Shrey Jain, chief executive officer of SAS Online. "Investors are advised to avoid hastily booking profits and instead maintain their long positions, considering potential buying opportunities, especially in the event of a minor gap-down opening tomorrow."
The GIFT Nifty was trading 10.50 points or 0.05% higher at 22,781.00 as of 06:40 a.m.
F&O Cues
The Nifty May futures were up 0.84% to 22,745.15 at a premium of 101.75 points, while the series' open interest is up 4.29%.
The Nifty Bank May futures were up 2.45% to 49,563.85 at a premium of 139.8 points, with a 30.81% rise in the open interest for the series.
Open interest distribution for the Nifty May series indicates that 22,500–22,700 levels are seeing the most put strikes, and call strikes of 22,500 have the maximum open interest.
During the previous session, most open interest was added at the 22,500–22,700 put strikes, and call strikes of 22,600 saw the maximum open interest change.
For the Bank Nifty options April 30 expiry series, the maximum call open interest is at 50,000 and the maximum put open interest is at 48,000.
Open Interest Distribution
Open Interest Change
FII/DII Activity
Overseas investors turned net buyers of Indian equities on Monday after five consecutive sessions of selling.
Foreign portfolio investors mopped up stocks worth Rs 169.1 crore and domestic institutional investors stayed net buyers for the sixth session and bought equities worth Rs 692.1 crore, according to provisional data from the National Stock Exchange.
Foreign institutions have been net buyers of Rs 2,216 crore worth of Indian equities so far in 2024, according to data from the National Securities Depository Ltd., updated till the previous trading day.
Markets On Monday
India's benchmark stock indices rebounded from Friday's drop to close nearly 1% higher on Monday, led by a rally in the banking, power and oil & gas sectors.
The Nifty settled 215.10 points, or 0.96%, higher at 22,635.05, and the Sensex rose 941.12 points, or 1.28%, to end at 74,671.28. Most sectoral indices ended higher, with the Nifty PSU Bank, Nifty Bank and Nifty Finance gaining the most, while Nifty Realty fell 1%.
Broader markets ended higher on BSE. The S&P BSE Midcap settled 0.77% up, and the S&P BSE Smallcap ended 0.10% higher.
On BSE, 17 sectors advanced, and three declined out of 20. The S&P BSE Financial Services was the top gainer, while the S&P BSE Realty was the top loser of the day.
Market breadth was skewed in favour of the buyers as 2,038 stocks rose, 1,875 stocks declined, and 175 stocks remained unchanged on BSE.
Major Stocks In News
Wipro: The company announced the launch of its own Lab45 Think Tank to help enterprise leaders and Wipro customers prepare for a future with emerging technologies. Lab45’s Think Tank will study the impact of emerging technologies., such as generative AI, space technology, spatial and quantum computing, IoT on business, people, and the planet.
NMDC: The company increased prices of lump ore by Rs 400 per tonne to Rs 6,200 per tonne and fines by Rs 200 per tonne to Rs 5,260 per tonne.
Tata Chemicals (Consolidated, YoY)
Revenue down 21.15% at Rs 3,475 crore vs Rs 4,407 crore (Bloomberg estimate Rs 3,873 crore).
Ebitda down 54.09% at Rs 443 crore vs Rs 965 crore (Bloomberg estimate Rs 519 crore).
Margin down 914 bps at 12.74% vs 21.89%, (Bloomberg estimate 13.4%).
Net loss at Rs 841 crore vs profit of Rs 692 crore (Bloomberg estimate Rs 182 crore).
Approved funds raise worth Rs 2,000 crore via bonds.
Recommended dividend of Rs 15 per share.
Birlasoft (Consolidated, QoQ)
Revenue up 1.45% at Rs 1,363 crore vs Rs 1,343 crore (Bloomberg estimate Rs 1,369 crore).
EBIT up 3.82% at Rs 201 crore vs Rs 193 crore (Bloomberg estimate Rs 202.3 crore).
Margin up 33 bps at 14.72% vs 14.38% (Bloomberg estimate 14.78%).
Net profit up 11.81% at Rs 180.08 crore vs Rs 161.05 crore, (Bloomberg estimate Rs 164 crore).
Board recommends a final dividend of Rs 4 per share.
Global Cues
Markets in the Asia-Pacific region climbed on Tuesday, taking cues from overnight gains on Wall Street. Investors await China's manufacturing activity data.
The Nikkei 225 was trading 484.26 points or 1.28% higher at 38,419.02 as of 06:38 a.m. The Kospi was 21.35 points or 0.79% higher at 2,708.79, and the S&P ASX 200 was 7.90 points or 0.10% up at 7,645.30 as of 06:41 a.m.
US stocks rose as a solid earnings season kept the market afloat despite bets the Federal Reserve will be forced to leave interest rates higher for longer, Bloomberg said.
The S&P 500 and the Nasdaq Composite rose 0.32% and 0.35%, respectively as of Monday. The Dow Jones Industrial Average rose 0.38%.
The Brent crude was trading 0.10% lower at $88.30 a barrel. Gold was down 0.04% to $2,334.77 an ounce.
Rupee
The Indian rupee closed weaker against the US dollar on Monday ahead of the US Federal Open Market Committee's meeting starting Tuesday.
The local currency closed 12 paise weaker against the US dollar at Rs 83.47. It closed at Rs 83.35 on Friday, according to Bloomberg data.
