Trade Setup For April 29: Nifty Set To Continue Range-Bound Trade
The GIFT Nifty was trading 13 points or 0.06% higher at 22,646.50 as of 06:30 a.m.
The markets have been consolidating over longer time frames despite a serious outflow of foreign investors. The benchmark indices may continue their consolidation in a range-bound trade, according to analysts. The NSE Nifty 50 has remained flat on a month-to-date basis despite Rs 36,000 crore of outflows from the foreign institutional investors, showing the resistance of domestic inflows. Metal and pharma stocks seem best positioned to continue the upmove.
The Nifty has formed a dark cloud cover candlestick pattern on a daily scale. For the short term, 22,620–22,630 will act as resistance for the index, according to Hrishikesh Yedve, assistant vice president, technical and derivatives research, at Asit C Mehta Investment Interrmediates Ltd. "If the index sustains above 22,630, Nifty could attempt to break its all-time high of 22,776. Otherwise, the index might consolidate in the range of 22,000–22,600."
The Nifty Bank opened with a gap up but settled the day on a negative note. Over the past couple of days, the index has crossed the 48,500 levels but has been unable to close above it. If the Bank Nifty closes above 48,500, then the rally might extend towards 49,000–49,500 levels, according to Yedve.
The intermediate volatility is normal during the earnings season and mixed global cues are adding to the choppiness, according to Ajit Mishra, senior vice president of research at Religare Broking Ltd. "We suggest continuing with a stock-specific trading approach and utilising dips to add quality names."
The GIFT Nifty was trading 13 points or 0.06% higher at 22,646.50 as of 06:30 a.m.
FII/DII Activity
Overseas investors remained net sellers of Indian equities on Friday for the fifth consecutive session.
Foreign portfolio investors offloaded stocks worth Rs 3,408.9 crore and domestic institutional investors stayed net buyers for the fifth day and mopped up equities worth Rs 4,356.8 crore, according to provisional data from the National Stock Exchange.
Markets On Friday
India's benchmark stock indices ended lower, snapping a six-session rally as Bajaj Finance Ltd., Larsen & Toubro Ltd. and ICICI Bank Ltd. dragged. However, the benchmarks closed higher on a weekly basis.
The Nifty settled 150.40 points, or 0.67%, lower at 22,419.95, and the Sensex declined 609.28 points, or 0.82%, to end at 73,730.16. The Nifty fell 0.82% to an intraday low of 22,385.55, and the Senex declined 0.97% to touch a low of 73,616.65 on Friday.
The benchmarks recouped losses from last week after rising for six straight sessions until Thursday. The Nifty index rose 1.23% and the Sensex gained 0.88% on a weekly basis.
All 12 sectors logged gains this week. The NSE Nifty PSU Bank index rose the most among its peers. The NSE Nifty Finance index was the worst-performing sector.
Broader markets outperformed their larger peers, with the S&P BSE Midcap ending with 0.83% gains and the S&P BSE Smallcap closing 0.27% higher on Friday.
Major Stocks In News
Small Finance Banks: The RBI has invited applications from small finance banks meeting specified criteria, including a minimum net worth of Rs 1,000 crore, for becoming regular or universal banks. There are about a dozen SFBs, including AU Small Finance Bank, Equitas Small Finance Bank, and Ujjivan Small Finance Bank.
Apollo Hospitals Enterprise: The company’s arm, Apollo HealthCo, will raise Rs 2,475 crore from Advent International and integrate Keimed over the next 24–30 months.
Maruti Suzuki (Standalone YoY)
Revenue up 19% at Rs 38,235 crore vs Rs 32,048 crore (Bloomberg estimate of Rs 38,459 crore).
Ebitda up 40% at Rs 4,685 crore vs Rs 3,350 crore (Bloomberg estimate of Rs 4,940 crore).
Margin at 12.3% vs 10.5% (Bloomberg estimate of 12.8%).
Net profit up 48% at Rs 3,878 crore vs Rs 2,624 crore (Bloomberg estimate of Rs 3,839 crore).
Board recommended final dividend of Rs 125 per share.
SBI Life Q4 FY24 (YoY)
Net premium income up 26% at Rs 25,116 crore vs Rs 19,897 crore.
Net profit up 4% YoY at Rs 811 crore vs Rs 777 crore (Bloomberg estimate of Rs 689 crore).
APE up 17% at Rs 5,330 crore vs 4550 crores.
VNB up 5% at Rs 1,510 crore vs Rs 1440 crore.
VNB margin down 3.3% at 28.3% vs 31.6%.
Ultratech Cement, UCO Bank, Poonawalla Fincorp, Tata Chemicals Q4 Results Today — Earnings Estimates
Global Cues
Asian stocks were up in early trade on Monday following gains among their Wall Street peers after the inflation reading met expectations, which eased concerns of a more hawkish Federal Reserve.
The Kospi index was trading 17.33 points or 0.65% higher at 2,673.66, and the S&P ASX 200 was 44.30 points or 0.58% up at 7,620.20 as of 06:27 a.m. Japan's Yen was trading above the $158.13 mark.
Wall Street breathed a sigh of relief after the recent economic data did not further erode the case for rate cuts this year, Bloomberg said. A rally in the world's largest technology companies also lifted stocks.
The S&P 500 and the Nasdaq Composite rose 1.02% and 2.03% respectively as of Friday. The Dow Jones Industrial Average rose 0.40%.
Brent crude was trading 0.77% lower at $88.81 a barrel. Gold declined 0.26% to $2,331.90 an ounce.
Rupee
The Indian rupee closed weaker on Friday despite a slight decline in the dollar index following the announcement of the US GDP figures.
The local currency closed two paise weaker against the US dollar at Rs 83.35.
