MOSt Market Roundup : Nifty future closed positive with gains of 0.65% at 22589 levels by Motilal Oswal Wealth Management
Market Update
Nifty : 22,508.75 +111.55 (+0.5%) Sensex : 74,169.95 +341.04 (+0.46%)
* The equity benchmark Sensex rose by nearly 350 points, while the Nifty closed above the 22,500 mark, boosted by gains in private banks, pharma, metal, and auto stocks, following a rally in global markets. However, the market remained relatively narrow throughout the day due to anticipation surrounding the US Federal Reserve’s interest rate decision this week and the Reserve Bank of India’s upcoming credit policy announcement next month.
* The US market saw a rise of over 2% on Friday, driven by bargain hunting after the S&P 500 Index dropped by 10% in the past five weeks. Asian markets gained up to 1.6% today after China reported better-than-expected retail sales data. The slowdown in Foreign Institutional Investor (FII) selling in domestic equities, the reduction in the trade deficit in February, and hopes of an interest rate cut by the RBI have positively impacted the market.
* Nifty ended the day up by 0.50%, or 111 points, closing at 22,508, marking the end of its two-day decline, while the Sensex closed at 74,169 points, up 341 points, or 0.50%, breaking its five-day losing streak.
* Pharma stocks were the major gainers, with the Nifty Pharma Index rising by 1.5%, led by Dr. Reddy's, Biocon, Granules, and Natco Pharma. Auto stocks saw fresh buying activity after Maruti and Tata Motors announced price hikes. Major private banks like ICICI Bank and Axis Bank contributed to a 0.5% rise in the Bank Nifty. The Nifty Metal Index gained 0.7%, driven by China’s new measures to boost domestic consumption, which fueled a rally in domestic metal stocks. IT and oil & gas stocks showed signs of recovery, while FMCG and realty stocks continued their bearish trend. The broader market also saw a significant uptick, with mid- and small-cap stocks rebounding after last week's sell-off. The advance-decline ratio of Nifty 500 stocks was 3:2, signaling buying interest in select mid- and small-cap stocks. Additionally, the falling US Dollar Index, which is hovering at a 5- month low below the 104 mark, supported the rally, as trade uncertainties and growing economic concerns in the US weighed on the currency.
Technical Outlook:
* Nifty Index opened on a negative note, but bulls took control right from the first tick, driving the index up by around 200 points in the initial hour of the session, reaching a high of 22577. However, post this the momentum faded out as the index remained range bound within 90-100 points, consolidating within the opening hour’s candle.
* It formed a bullish candle on daily chart and closed with gains of 111 points near 22500. Now it has to hold above 22400 zones for an up move towards 22650 then 22800 zones while supports can be seen at 22330 then 22222 zones.
Derivative Outlook:
* Nifty future closed positive with gains of 0.65% at 22589 levels. Positive setup seen in IEX, Muthoot Finance, UPL, Voltas, Chambal Fertilizers, Bajaj FinServ, Granules India, Dr. Reddy, SBI Life, VBL and Hudco while weakness in LTI Mindtree, Prestige Estate, AU Bank, Jio Finance, IIFL, Dabur, Wipro, Britannia Industries, Tata Technologies, Max Financial, and BPCL.
* On option front, Maximum Call OI is at 23000 then 22800 strike while Maximum Put OI is at 22000 then 22500 strike. Call writing is seen at 22800 then 22700 strike while Put writing is seen at 22500 then 22300 strike. Option data suggests a broader trading range in between 22000 to 23000 zones while an immediate range between 22300 to 22700 levels.
* Maruti Suzuki to raise car prices by up to 4% from April – Company plans to raise the prices of its cars by up to 4%, depending on the model, from April. The decision to raise prices comes in the wake of rising input costs and operational expenses.
* Swiggy Instamart Expands Quick Commerce to 100 Indian Cities – Company has expanded its quick commerce services to 100 cities across India, driven by increasing demand in tier 2 and tier 3 markets. This expansion allows millions of new customers access to over 30,000 products delivered in 10 minutes, enhancing Swiggy's reach and service in underserved areas.
* Larsen & Toubro – Company plans to invest up to Rs 3,600 crore to set up three new data centres to increase its capacity five times to 150 MW by 2027, Seema Ambastha, chief executive officer of L&T Cloudfiniti, has told Moneycontrol.
* Wholesale price inflation reported at 2.38% in February, in line with a print of 2.31% in January – Bloomberg expectation 2.29%.
* HCC - Company's joint venture with Tata Projects received order worth Rs 2,191 crore for Indore Metro. The company's share in the project is Rs 1,205 crore.
* Welspun Corp - The company received new orders worth Rs 2,400 crore for coated pipes supply. The consolidated order book stands at about Rs 20,000 crore.
* Transformer & Rectifiers - The company received orders worth Rs 726 crore from Gujarat Energy Transmission Corp for auto transformers.
Global Market Update :
* European Market - European stocks were muted as investors looked ahead to central banks’ decisions as President Donald Trump continues to ramp up tariffs threats. UK, France and Germany’s DAX are trading flat to positive.
* Asian Market - Asian stocks rose, extending gains on optimism over China’s plans to boost consumption and stabilize its markets. China retail sales and Industrial Production (IIP) reported better than expectation. Beijing will promote “reasonable growth” in wages and set up a mechanism to adjust the minimum salary, according to the official Xinhua News Agency. Hong Kong, Japan, South Korea, Taiwan and Australia Index gained between 1-2%.
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