Nifty up by 115 points to 14,937, markets open positive on back of positive global sentiments. In the last 5 trading sessions nifty gained more than 500 points from the lows of 14461 of 4th May 2021 along with this India VIX has also started cooling off from levels of 23 to 20. Now Nifty is heading towards its very important levels of 15050 & 15100, if Nifty is able to give closing above this levels then we can see a fresh up move in nifty and it can break the previous all time high of 15431 which was made in the month of February 2021. We suggest retail investors to trade cautiously as nifty headed towards the important levels of 15100 Yash Gupta Equity Research Associate, Angel Broking Ltd
Indian share market indices BSE Sensex and Nifty 50 ended April 2021 on a negative note, falling up to 2.5 per cent on the back of rising COVID-19 cases and announcements of lockdown-like measures. The challenges of the second wave of COVID-19 seem to be real which may severely impact the economy in the forthcoming quarters.
We expect the volume growth trajectory to continue over the next few years, driven by: a) pure monopoly play in PepsiCo India’s business, b) an increase in on-the-go consumption across product segments, c) increasing volumes from the newly acquired regions (south/west), d) a diversifying product portfolio, coupled with new launches, and e) growing refrigeration penetration in rural/ semi-rural areas. However, in the near term, covid resurgence might affect volumes during the peak season of Apr–June’21 and delay expansion plans in the south/west regions. We expect a revenue/EBITDA/PAT CAGR of 13%/15%/32% over CY19–22E. We value the stock at 31x CY22E EPS. Maintain Buy with TP of Rs 1,150. Motilal Oswal Financial Services
The resilience of the market in the midst of the tragic health crisis might appear irrational to most observers. But it is important to discern the cold economic/financial logic that drives markets. Markets focus on earnings, particularly future earnings. Trends indicate robust future earnings, particularly from segments like IT, pharma, leading financials and metals. Consumer discretionary is, however, on a sticky wicket. This segment, particularly autos, might witness earnings downgrades. The global economic backdrop is favourable with strong economic recovery led by US, China and most parts of Europe. In India, fresh Covid cases are declining in Maharashtra, Madhya Pradesh & Delhi. The market is likely to take cues from the positive data. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Radhakishan Damani’s Avenue Supermarts shares (DMart) gave up initial gains on Monday to slip into negative territory, as investors reacted to Januar-March quarter results. DMart hypermarket chain reported a 52% on-year jump in net profit during the January-March quarter to Rs 414 crore, with 18% on-year revenue growth. The strong performance was helped by the low base of the previous year. Although the performance has been robust, the management has already cautioned of headwinds owing to the second wave of Covid-19. This has forced leading brokerage firms to maintain bearish views on Avenue Supermarts stock price. Currently, the Avenue Supermarts share price was down 0.71%, trading at Rs 2,868 per share.
The markets are trading well above the resistance of 14700. If we maintain this today, we can scale up higher to 15200-15250. Since we have been able to cross 14700, this level has now become a good support for the Nifty. As long as this holds, we can use any dip or intraday correction to buy into the markets for higher targets. If 14700 breaks on a closing basis, the index could slip to 14400. Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal
Despite the manifold challenges present in the current scenario, the life industry has begun the current fiscal on a positive note. The growth is expected to be driven by the private sector who grew at a much faster pace compared to the public sector. The pandemic has created a rise in the demand for protection plans, even as the market volatility continued to affect the demand for linked plans. In FY22, along with the increased awareness of insurance, a digital push for insurance and any increase in term plan premiums are expected to drive the life premiums CARE Ratings
The forex traders are likely to remain in dilemma to take a call whether Rupee will appreciate on global risk-on bias or depreciate on deteriorating domestic sentiment. But one thing is sure that the volatility is likely to remain high for the near term. The risk to reward ratio for the pair seems in favor of the trader as the downside seems limited up to 73-73.10, whereas the upside is likely to take charge at least up to 74.50 in the near term. Amit Pabari, managing director, CR Forex Advisors
The Indian Rupee is expected to trade in the range of 73.20-73.60 with a mixed bias as dollar weakness after softer US job report erased safe-haven demand but domestic state-wise stricter lockdown is creating a pessimistic bias. The Indian equities are likely to track the US and Asian positive sentiments. But FII figures are not justifiable for the recent recovery. The daily case above 4 lac per day is surely a headwind in front of the economy and business. Amit Pabari, managing director, CR Forex Advisors
COMEX gold trades little changed near $1832/oz after a 0.9% gain on Friday. Gold remains supported by disappointing US non-farm payrolls data which has pressurized the US dollar and increased expectations that the Fed may keep interest rates low. Gold has also benefitted from ETF inflows which showed pick up in investor buying. However, weighing on price is concerns about Indian demand and general improvement in virus situation in the US and Europe. Gold has been setting new highs indicating positive momentum and this may continue until US dollar is under pressure. Ravindra Rao,CMT, EPAT, VP- Head Commodity Research at Kotak Securities
All the Nifty sectoral indices were trading in the positive territory, lead by Nifty Metal index, which was up nearly 3 per cent. It was followed by Nifty Pharma index
UltraTech Cement, Infosys, Maruti Suzuki were among BSE Sensex losers in Monday’s trade
Dr Reddy’s, ONGC, Housing Development Finance Corporation, Titan Company, Sun Pharma, Kotak Mahindra Bank among top Sensex gainers.
BSE Sensex was trading 300 points or 0.6 per cent higher at 49,500, while the broader Nifty 50 index crossed 14,900
Going ahead, we reiterate our positive stance on the market and expect Nifty to eventually head towards life-time high of 15400 in the month of May 2021. However, move towards 15400 would not be linear in nature, as bouts of volatility owing to escalating concerns over COVID-19 2nd wave. Therefore, intermediate dips toward 14600 should be capitalised as an incremental buying opportunity in quality large and midcaps amid progression of Q4FY21 result season
Commodity prices traded higher during the week passed by with Bullion prices witnessing the best week of the last six months. Crude oil prices reported a second weekly gain with broad buying in commodities. Base metals extended gains with Copper and Aluminium prices rose the most boosted by strong demand outlook and lower supply concerns.
Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Hyderabad: Prices of Petrol and Diesel was hiked today after a two-day pause. Petrol in Delhi today costs Rs 91.53 per litre, up 26 paise since yesterday. Diesel in Delhi costs Rs 82.06 litre, an increase of 33 paise. Prices were hiked for four consecutive days last week. Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices on a daily basis in line with benchmark international price and foreign exchange rates.
The chart pattern suggests that if Nifty crosses and sustains above 14900 levels it would witness buying which would lead the index towards 15000-15250 levels. Important Support for the week is around 14400-14200. Nifty is trading above 20 and 50 day SMA’s which are important short term moving average, indicating positive bias in the short term. Nifty continues to remain in an uptrend in the medium term, so buying on dips continues to be our preferred strategy.
Nifty futures were trading 146.75 points or one per cent higher at 15,006.80 on Singaporean Exchange, suggesting a positive opening for BSE Sensex and Nifty 50 on Monday. On a weekly chart, Nifty/Sensex gained 400/1,200 points from the lowest levels, said an analyst.
After having gained 1% each last week, domestic benchmark equity indices might look to continue their upward march on Monday. S&P BSE Sensex now sits at 49,206 while the 50-stock NSE Nifty is at 14,823. Nifty futures on the Singapore Exchange were up more than 100 points, hint at a positive start for domestic equities. Technically, Nifty close above the resistance levels on Friday, which could see the index surge higher and reclaim 15,000 in the coming sessions. On the fundamental side, Dalal Street’s movement is expected to be influenced by covid-19 and vaccination drive.
COVID-19 updates, financial results and macro-economic data will continue to steer stock markets in this holiday-shortened week, say analysts. Global trends are also expected to guide the market sentiment, they added. Equity markets would remain closed on Thursday for ‘Id-Ul-Fitr’.
If fears of COVID-19 persist among overseas investors, then further redemptions cannot be ruled out, Himanshu Srivastava, Associate Director – Manager Research, Morningstar India, stated. According to the data, foreign portfolio investors (FPIs) withdrew a net sum of Rs 5,936 crore from Indian equity markets during May 3-7.