The Indian stock market ended correction last week & found support at lower levels.
MUMBAI, Apr 26 (The CONNECT) – Domestic equity benchmarks halted their five-day winning streak on Friday, driven by weak global cues, according to Asit C. Mehta Investment Interrmediates Ltd.
The Indian stock market ended correction last week & found support at lower levels, said Mahavir Lunawat, Managing Director, Pantomath Capital Advisors Pvt. Ltd. – A Leading Mid-Market Investment Bank
“We have seen pullback rally during this week. In short term, Indian Market will remain volatile ahead of Geopolitical tensions & due to Q4 FY2024 earning season,” Lunawat opined.
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates said, the Nifty opened on a positive note on the first day of the May series but could not sustain at higher levels and closed the day on a negative note at 22,420. The broader market outperformed the benchmarks, with the midcap and smallcap indices registering fresh lifetime highs. Technically, the index has formed a dark cloud cover candlestick pattern on a daily scale. Thus, for the short term, 22,620-22,630 will act as resistance for the index. If the index sustains above 22,630, Nifty could attempt to break its all-time high of 22,776; otherwise, the index might consolidate in the range of 22,000-22,600. Short-term support levels for Nifty are at 22,300 and 22,000, while resistance levels are 22,630 and 22,800.
Yedve said The Nifty Bank index opened with a gap up but failed to sustain at higher levels, settling the day on a negative note at 48,201. Over the past couple of days, the index has crossed 48,500 levels but has been unable to close above it. If the Bank Nifty closes above 48,500, then the rally might extend towards 49,000-49,500 levels. Short-term support levels for Bank Nifty are indicated at 47,000 and 46,600, while resistance levels are 48,500 and 49,500″
As per RBI latest policy minutes of meeting, rates were held steady at 6.5%, continuing a 16-month status quo approach with maintaining stance at “Withdrawal of Accommodation”. No immediate rate cuts are anticipated, with potential reductions considered for Q4 of FY2025. India’s net direct tax collections reached ₹19.58 lakh crore in FY 2023-24, marking a 17.7% year-on-year growth, driven by robust corporate and personal income tax revenues. India’s Forex Reverse stood at $643.16 BN as on 12th April 2024, Lunawat said.
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Primary Market Update:
This week, commencing March 21st, 1 mainboard IPO of JNK India closed this week for size of INR 649 crores and got subscribed over 28 times, Mahavir Lunawat, Managing Director, Pantomath Capital Advisors Pvt. Ltd. – A Leading Mid-Market Investment Bank, said
“We continue to remain optimistic about the potential of the upcoming public issues. Vodafone Idea’s ₹18,000-crore follow-on public offer, the largest so far by an Indian company, was subscribed more than six times and the share price opened at ₹ 11.80 per share, 7.27% higher than the issue price.Despite a lackluster beginning to the new financial year FY25 in the IPO market, we are optimistic about the potential of the upcoming public issues,” Lunawat said.
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Sugar sector remained in focus as sugar prices in India have increased by approximately 4.5% in the last two weeks. This rise is due to a spike in demand from beverage and ice cream manufacturers, driven by soaring temperatures that have reached 42-44 degrees Celsius in many areas. Despite the government increasing the monthly sugar sales quota from 2.2 million tonnes in February to 2.5 million tonnes in April, demand remains high. Further, the government has allowed sugar miils to use 6.7 lakh tonnes of B- heavy molasses as feed stock for making Ethanol current year, Lunawat said.
There are growing concerns in India about the safety of baby foods, protein powders, and spices, which is not good news for the fast-moving consumer goods (FMCG) industry. These worries include the levels of sugar and chemicals in food products, as well as health claims made by companies. Such concerns can lead to immediate regulatory action and long-term consumer mistrust, impacting companies’ reputations and stock values. Additionally, social media influencers are putting pressure on FMCG companies to make their products healthier, leading to changes like reducing sugar content. Overall, these developments pose risks for FMCG companies, especially regarding consumer trust and brand reputation, he said.
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