Trade Setup For April 25: Nifty To Remain Range-Bound, Pause Near 22,500 In Short Term
Stocks in the Asia-Pacific region opened lower in trade on Thursday, tracking cues from its Wall Street peers.
NSE Nifty 50 index had previously left a bearish gap around the 22,500 levels and is finding it difficult to sustain above it. Therefore, the index is likely to pause near the 22,500–22,530 levels in the short term, according to Hrishikesh Yedve, senior technical research analyst at Asit C Mehta Investment Intermediates Ltd.
If the index sustains above 22,530, the Nifty could attempt to break its all-time high of 22,776. Otherwise, the index could witness consolidation in the 22,000–22,500 zone, Yedve said.
While the momentum is still in favour of the Nifty Bank, it may see an impact due to the central bank's crackdown on Kotak Mahindra Bank Ltd. Telecom is likely to have taken a small breather, but most participants are bullish. The chemical sector is returning from hibernation with uptick in select base chemical prices.
There might be further consolidation within the 22,300–22,500 zone in Nifty. However, the volatility may remain high due to the scheduled expiry of April monthly derivatives contracts, he said. "Traders should maintain their focus on sectors/themes that are showing consistency in the trend like metal, auto and defence and accumulate them on dips."
For Bank Nifty, 48,300–48,500 will act as a short-term hurdle for the index and if the Bank Nifty sustains above 48,500, then the rally might extend towards 49,000–49,500 levels, Yedve said.
The GIFT Nifty was trading 28.5 points or 0.13% down at 22,337.00 as of 06:39 a.m.
FII/DII Activity
Overseas investors remained net sellers on Wednesday for the third consecutive session.
Foreign portfolio investors offloaded stocks worth Rs 2,511.7 crore and domestic institutional investors stayed net buyers for the third day and mopped up equities worth Rs 3,809.9 crore, according to provisional data from the National Stock Exchange.
Markets On Wednesday
India's benchmark stock indices ended higher for the fourth session on Wednesday, led by gains in Kotak Mahindra Bank Ltd., ICICI Bank Ltd., and Larsen & Toubro Ltd.
The NSE Nifty 50 ended 34.40 points or 0.15% higher at 22,402.40, and the S&P BSE Sensex gained 114.48 points or 0.16% to close at 73,852.94. Intraday, the NSE Nifty 50 rose 0.48% and the Sensex rose 0.52%.
Broader markets outperformed benchmark indices. The S&P BSE Midcap ended with 0.92% gains and the S&P BSE Smallcap settled 0.79% higher on Wednesday.
On BSE, 18 sectors advanced and two declined. The S&P BSE Metal index was the best performing sector, while the S&P BSE Telecommunication was the worst performing sector. Market breadth was skewed in favour of the buyers as 2,254 stocks rose, 1,561 declined and 114 remained unchanged on BSE.
Major Stocks In News
Kotak Mahindra Bank: The Reserve Bank of India directed the company to cease and desist the issue of fresh credit cards and the onboarding of new customers through its online and mobile banking channels with immediate effect.
Reliance Industries: The company acquired a 100% stake in MSKVY Nineteenth Solar SPV and MSKVY Twenty-second Solar SPV for Rs 1 crore.
TCS: The company entered a strategic partnership with Amazon Web Services to accelerate its customers’ cloud transformation journey at scale.
Axis Bank (Standalone, YoY)
NII up 11% at Rs 13,089 crore vs Rs 11,742 crore.
Net profit at Rs 7,130 crore vs loss of Rs 5,728 crore (Bloomberg estimate Rs 6,261 crore).
Gross NPA at 1.43% vs 1.58% (QoQ).
Net NPA at 0.31% vs 0.36% (QoQ).
Recommended the final dividend of Re 1 per share.
Approves raising up to Rs 20,000 crore via shares and Rs 35,000 crore via bonds.
HUL (Consolidated, YoY)
Revenue down 0.04% at Rs 15,210 crore vs Rs 15,215 crore (Bloomberg estimate Rs 15,145 crore).
Ebitda down 1.06% at Rs 3,535 crore vs Rs 3,573 crore (Bloomberg estimate Rs 3,476 crore).
Margin narrows 24 bps at 23.24% vs 23.48% (Bloomberg estimate 23%).
Net profit down 1.53% at Rs 2,561 crore vs Rs 2,601 crore (Bloomberg estimate Rs 2,517 crore).
Recommended a dividend of Rs 24 per share.
Global Cues
Stocks in the Asia-Pacific region opened lower in trade on Thursday, tracking cues from its Wall Street peers that was dragged down in the last hour by the tech stocks.
The Nikkei 225 was trading 463.62 points or 1.21% lower at 37,996.46 as of 06:30 a.m. Investors will monitor the outcomes from the Bank of Japan, especially for any action to restrict the yen weakness.
The KOSPI index was trading 23.99 points or 0.90% lower at 2,651.76 as of 06:32 a.m. South Korea reported 1.3% sequential growth in its first quarter GDP advance estimates, beating analysts' forecast of 0.6% growth, Bloomberg reported.
Wall Street ended on a mixed note on Wednesday as traders assessed bleak outlook from Meta Inc., one of the magnificent seven, and as treasury yields rose following sales of five-year US Treasury notes.
The S&P 500 index and Nasdaq Composite rose by 0.02% and 0.10%, respectively, as of Wednesday. The Dow Jones Industrial Average settled 0.11% down.
Brent crude was trading 0.05% lower at $87.97 a barrel. Gold rose 0.09% to $2,318.36 an ounce.
Rupee
The Indian rupee closed stronger on Wednesday after the US Dollar Index fell. The local currency strengthened by 2 paise to close at Rs 83.32 against the US dollar.
