The SGX Nifty signaled that domestic benchmark indices NSE Nifty and BSE Sensex might open in the green, as Nifty futures traded 28 points higher at 17,787 on the Singaporean exchange. Benchmark indices NSE Nifty and BSE Sensex ended Monday’s session broadly in green. The Nifty 50 jumped 119.35 points or 0.68% to 17,743.40 and Sensex surged 401.04 points or 0.67% to 60,056.10.
“The positive market sentiment in the domestic market was boosted by strong earnings reported by heavyweights. This led to a reversal in the cautiousness from initial below expectation FYQ4 results. However, the weak global sentiment did raise some concerns midway. But the banking sector played a key role in this upward trend, with sector majors reporting strong earnings,” said Vinod Nair, Head of Research, Geojit Financial Services.
Asian Markets
Shares in the Asia-Pacific region traded largely in the red on Tuesday. South Korea’s Kospi fell 1.21% in trade on Tuesday. China’s Shanghai Composite fell 0.29%, while the Shenzhen Component tanked 1.21%. Hong Kong’s Hang Seng index slipped 1.1%, while Japan’s Nikkei 225 was an outlier, gaining 0.46%.
Crude Oil
Oil prices slipped in early trade on Tuesday, paring gains from the previous session, as investors weighed strong holiday travel in China that could boost fuel demand with the prospect of rising interest rates elsewhere slowing economic growth. Brent crude fell 7 cents to $82.66 a barrel at 0013 GMT, while U.S. West Texas Intermediate crude eased 6 cents to $78.70 a barrel, according to Reuters.
FII/DII Data
Foreign institutional investors (FII) net sold shares worth Rs 412.27 crore, while domestic institutional investors (DII) net purchased equities worth Rs 1,177.18 crore on 24 April, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has no securities on its F&O ban list for 25 April. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.
Technical View
“Nifty is showing signs of upside breakout of the small narrow range. But, a decisive upside breakout could only occur on Nifty surpassing the crucial area of 17865 levels in coming sessions. That could possibly result in sharp positive reversal for the Nifty. Immediate support is at 17600 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Bank Nifty View
“Bank Nifty index witnessed a strong breakout on the daily chart with a sharp surge in volumes. The index remains in a strong buy mode and any dip should be an ideal opportunity to add on the log positions. The lower-end support is visible at 42,300 which will act as a cushion for the bulls and the potential upside targets are 43,000/43,300,” said Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities.
Currency Outlook
“The Indian rupee started the week on a positive note following stronger regional currencies, corporate dollar flows and higher domestic equity. The local unit is back above 82 as sentiments turned positive on the expectation of the dollar inflows from state-run bank dollar debt issuance. Technical set-up remains favourable for the rupee bulls as long as it trades above 82.30. However, we see month-end dollar demand from hedgers and banks around 81.70. Broadly, the rupee is likely to trade between 81.70 to 82.30,” said Dilip Parmar, Research Analyst, HDFC Securities.