A strong bounce back by the heavyweights helps NIFTY post best day in 2 months. 

NIFTY today opened outside the downtrend channel at 15,912, up by 70 pts. The index had no confusion and was in a clear uptrend today. After breaking major resistances, NIFTY ended the day at 16,259, up by 417 points or 2.63%.

BANK NIFTY started the day at 33,796, up by 198 pts. After taking support from 33,700, the index moved up till the day-end with some consolidation above the 34k mark. BANK NIFTY ended the day at 34,301, up by 704 points or 2.1%.

Nifty Metal (+6.8%) had an amazing day. All the indices closed in the green with Nifty Auto (+2.4%), NIFTY PSU Bank (+2%), NIFTY Finserv(+2%), NIFTY FMCG (+2%) NIFTY IT (+2.7%), NIFTY Media (+3%) moving the most.

Asian markets closed well in the green. European markets are trading currently with a gain of 1%.

Today’s Moves

Nifty Metal stocks bounced back strongly after falling heavily for many days-  Fueled by China’s reopening plans.

Hindalco (+9.5%) closed as the Nifty 50 top gainer. Tata Steel (+7.7%), Coal India (+7.4%) and JSW Steel (+6.5%) also featured in the list. Hind Copper (+9.9%), National Aluminum (+7.7%), SAIL (+5%), Vedana (+11.7%) moved up.

As we discussed earlier, Nifty Auto is continuing the strength from support levels. Tata Motors (+4.6%), TVS Motors (+3.4%), Maruti (+3.9%), and Eicher Motors(+3.3%) performed well.

Today’s largest contributor to NIFTY, Reliance (+4.2%), closed above the major resistance of 2500. ONGC (+6.2%) also gained as international crude oil prices hit a near 2-month high.

LIC opened with a discount of 8% at Rs 872 vs Rs 949 IPO price and closed at Rs 875.

Tata Power (+6.4%) partnered with Hyundai Motor India to power up EV-charging infrastructure in the country. Most power stocks including Adani Power (+5%), IEX (+4.1%) and JSW Energy (+8%) also moved up.

Many small cap stocks including STL tech (+13.1%), VTL (+12.1%), NLC India (+11.7%), Intellect (+11.1%) closed more than 10% up.

IT stocks gained back in the day with Wipro (+4%), HCL Tech (+3.6%) and TCS(+2.2%) outperforming. LTTS (+8%), LTI (+4.5%) and Mindtree (+4.5%) also gained back well.

Abbott India’s (+6.8%) results stood above estimated levels with a net profit of Rs 210 crores, up 35% YoY.

Star Cement (+8.8%) moved up after reporting Q4 consolidated net profit at Rs 88.4 crores, 90% higher than last quarter.

Markets Ahead

India reported its April Wholesale Price inflation at 15.08%, but this was expected after last week’s inflation data.

NIFTY has taken support and moved back up once again supported mainly by Reliance. There is a dual effect to this as Indian markets tend to get weaker when crude oil prices move up in the short term. Meanwhile, Reliance would do better and push the market up.

Russians firing missiles near the Polish border was also conveniently ignored by the bulls.

NIFTY has recovered and comfortably closed above the 16k mark. It is still more than 500 points away from the 200-day exponential moving average which needs to be crossed for confirmation of trend.

IT stocks have gained back despite global pressure. Bitcoin is also trying to gain after its first 7-week losing streak in history.

Bank Nifty has now created two strong green candles in the daily charts. The 200-day EMA is near the 36,000 mark for the index and needs to be watched out for.

See you on The Stock Market Show tonight at 7 PM.