There was a positive trend in the domestic stock markets for the seventh consecutive day on Tuesday. Sensex crossed its psychological level of 60,150, while Nifty 50 moved closer to around 17,750 levels on broad-based buying across baskets. Smallcap stocks recorded gains, meanwhile, banking and metal stocks outperformed the benchmark.
The Sensex closed at 60,157.72, up 311.21 points or 0.52%. The Nifty 50 jumped 98.25 points or 0.56% to close at 17,722.30.
Top gainers on the Sensex were – Kotak Bank rising over 5% followed by Tata Steel with a rise of 2.4%. ITCShares of ICICI Bank, Maruti Suzuki, Bajaj Finserv, M&M, and SBI rose between 1% to 2%—further contributing to the overall rise.
Among the top underperformers were – TCS Infosys, HCL Tech, Tech Mahindra, Wipro and Asian Paint declined 1% to 1.4% each, after falling 1.5% each.
IT stocks are in focus ahead of TCS and Infosys Q4 results.
In terms of sectoral indices, on the BSE, Bankex jumped over 760 points or 1.6%. While the metal index closed with a gain of around 362 points or 1.9%. Financial services also rose more than 1%.
Barring minor losses in IT and realty stocks, all other sectoral indices were in the green. The IT index broke above 264 points.
Ajit Mishra, VP – Technical Research, Religare Broking said, “Markets managed to move higher in a volatile session while continuing the current positive tone. On the benchmark front, Nifty closed close to day’s high and closed at 17722.30; up 0.56%. Most sectors traded in line and posted decent gains. However, IT majors declined ahead of earnings. Meanwhile, continued recovery on broad front added positivity.
Besides, at the interbank forex market, the rupee weakened and breached the key psychological mark of Rs 82 against the dollar as demand for the greenback picked up. Also, corporate outflows ahead of macroeconomic data played a role in dampening the mood in the domestic currency. The rupee closed at 82.1250 against the dollar against the previous day’s close of 81.98 per dollar.
Going forward, Mishra said, “Nifty has crossed 17700, but stability will now be the key to test the 18,100+ zone. A lot will depend on how the earnings season pans out. Amidst all this, we Recommend to continue with “Buy on Dips” approach with focus on stock selection and risk management.”
Besides, on Nifty, Rupak Dey, Senior Technical Analyst, LKP Securities said, “Nifty remained volatile throughout the session as traders await CPI data, which is scheduled tomorrow. The index remained above important moving averages. Its Besides, Nifty has turned lower. Till now it remains above the important support level of 17500. As long as the index remains above 17500, the market will continue to buy on the downside. Immediate support is visible at 17640. Higher end But, the rally may move towards 17850/17970.
Regarding the rupee, Jatin Trivedi, VP Research Analyst, LKP Securities said, “Participants are pricing in CPI data impact from both India and US, which is to be released tomorrow, after unemployment data loomed large in US Lower than expected which may leave room open for the Fed to hike one more time in the Fed’s policy decision in the coming May month. Thus the rupee is trying to factor in the CPI effects. Rupee 81.85-82.25 can be seen in the range.
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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