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Market Update

Nifty : 22,497.90 +37.60 (+0.17%)  

Sensex : 74,102.32 -12.85 (-0.02%)

* The equity benchmark Nifty rebounded into positive territory, recovering from earlier intraday losses despite weak global sentiment amid growing fears of a U.S. economic slowdown.

* These concerns were fueled by President Donald Trump's remarks, which did not rule out the possibility of a recession due to the implementation of U.S. tariffs. The market opened weakly, tracking declines in Asian markets and a 4% drop in U.S. markets overnight.

* However, it gradually recovered throughout the day, ending with modest gains. Market sentiment was lifted by reports that India and the U.S. are set to negotiate a trade deal, focusing on increasing market access, reducing import duties and non-tariff barriers, and enhancing supply chain integration.

* Additionally, the gradual reduction in foreign institutional investor (FII) selling, along with the attractiveness of the domestic market after a 15-30% drop across several sectors, helped the market rebound from its intraday lows. The Nifty finished 0.17% higher at 22,499, while the Sensex closed at 74,095.56, reflecting a 0.03% decline from Monday's close.

* Broader market indices were mixed, with the Nifty Midcap and Small Cap Indices rising by 0.6% and 0.8%, respectively. The Nifty Real Estate Index emerged as the biggest gainer, rising over 3%, while the Nifty Oil & Gas Index gained 1.2%, benefiting from a drop in oil prices to a four-month low of below $70 per barrel.

* The advance-decline ratio of Nifty 500 stocks stood at 1.5:2.5, indicating a shift in buying interest towards mid and small-cap stocks. IT stocks were the biggest losers, with the Nifty IT Index dropping 1%, hitting a two-month low, as global IT major Nasdaq Composite fell over 4%, driven by concerns about an economic slowdown.

Technical Outlook:

* Nifty Index opened slightly negative but buying was witnessed right from the initial tick and it recovered by 200 points from its opening low. It went on to cross 22500 zones and managed to close near the same. It formed a bullish candle on daily frame with longer lower shadow indicating support based buying is intact at minor bounces.

* Now it has to hold above 22400 zones for an up move towards 22650 then 22900 zones while supports can be seen at 22300 then 22222 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.33% at 22589 levels. Positive setup seen in Tata Communication, JSW Energy, MFSL, Godrej Properties, Oberoi Realty, GMR Airports, Laurus Lab, Asian Paints, Sun Pharma, Bharti Airtel and Shriram Finance while weakness in IndusInd Bank, Bandhan Bank, BSE, Ashok Leyland, Infy, Bsoft, IDFC First Bank, Escorts, Lupin, Axis Bank, and Apollo Tyre.

* On option front, Maximum Call OI is at 23000 then 22900 strike while Maximum Put OI is at 22200 then 22000 strike. Call writing is seen at 22900 then 23000 strike while Put writing is seen at 22200 then 22400 strike. Option data suggests a broader trading range in between 22000 to 23000 zones while an immediate range between 22300 to 22700 levels.

* IndusInd founders willing to inject capital in Bank if needed - A group of founders of IndusInd Bank are open to injecting further capital in the Indian lender in the event such a need arises, according to Ashok Hinduja, the chairman of Indusind International Holdings. The founders are also committed to their pending proposal to raise stake in the Indian lender, Hinduja says in an interview with ET Now television channel.

* Zydus Life to buy 85.6% stake in Amplitude surgical for $280M - Company has signed an agreement to buy 85.6% stake in Amplitude Surgical SA for 256.8mn euros or over Rs2000cr in cash. Company to buy stake at 6.25 euros per share.

* Supreme Industries to acquire Indian piping business of Wavin Industries - The company has signed a Memorandum Of Understanding (MoU) with Wavin Industries for acquisition of its Indian piping (building and infrastructure) business, at an aggregate consideration of $30mn.

* Schaeffler India - Company announced that it has set Wednesday, April 23, 2025, as the record date for the payment of dividend to its eligible shareholders at Rs28 a share.

* Hindustan Zinc increases Serentica Power Purchase deal to 530 MW – Company has increased its agreement to buy green power from Serentica Renewables to 530 MW from 450MW earlier. The pact will cover 70% of Hindustan Zinc’s overall power requirements, it said. Serentica will build new solar, wind and energy storage at multiple sites across the country and integrate some existing projects as well. Projects to be fully operational by 2027. In October, Hindustan Zinc said it would invest Rs327cr for a 26% stake in Serentica.

Global Market Update

* European Market - European market are witnessing mixed bag. UK Index declined 0.2% as worries about a faltering US economy fueled a global selloff. However, both France and Germany’s DAX gained over 0.5% each on optimism around a higher spending to boost higher economy growth.

* Asian Market - Asian stocks fell but recovered partially from the intra-day low. Investors sold risk assets amid growing concern over US economic growth, with disappointing data from Japan also weighing on sentiment.

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