scorecardresearchMarket Wrap: Sensex, Nifty end in the green; mid, smallcaps outperform

Market Wrap: Sensex, Nifty end in the green; mid, smallcaps outperform

Updated: 03 Apr 2023, 04:28 PM IST
TL;DR.

Sensex closed 115 points, or 0.19 percent, up at 59,106.44 while the Nifty settled at 17,398.05, up 38 points, or 0.22 percent.

Sensex ended in the green on April 3.

Sensex ended in the green on April 3.

Domestic equity benchmarks the Sensex and the Nifty ended in the green on the first day of the new financial year 2023-24 (FY24) on April 3, tracking positive global cues.

The market benchmarks extended their gains into the third consecutive session.

Sensex traded volatile through the session amid hopes that the central banks would hit a pause on rate hikes due to easing price pressure.

However, a sharp rise in crude oil prices has raised concerns that the fight against inflation may get stretched.

The Reserve Bank of India (RBI) will announce its policy decision on April 6. The Monetary Policy Committee (MPC) of RBI during its three-day meeting (April 3, 5 and 6) will consider several domestic and global factors before it declares its policy decision.

There is a widespread expectation of a 25 basis points hike in benchmark interest rate. After this, the RBI may pause rate hikes that began in May 2022.

Sensex closed 115 points, or 0.19 percent, up at 59,106.44 while the Nifty settled at 17,398.05, up 38 points, or 0.22 percent.

Mid and smallcaps outperformed the benchmarks. The BSE Midcap index increased by 0.36 percent while the Smallcap index rose by 1.17 percent.

Crude oil prices saw a sharp jump after OPEC+ decided to reduce production.

The Organization of the Petroleum Exporting Countries and their allies (OPEC+) including Russia shook markets by announcing further production cuts of about 1.16 million barrels per day (bpd) on April 2, reported Reuters.

Brent Crude traded over 5 percent higher near the $84 per barrel mark.

Top Nifty gainers and losers

Shares of Hero MotoCorp, Coal India and Bajaj Auto ended as the top gainers in the Nifty index while those of BPCL, Adani Enterprises and Apollo Hospitals Enterprise ended as the top losers.

As many as 32 stocks ended in the green and 17 in the red while one stock - Reliance Industries - ended flat.

Auto, PSU bank lead sectoral indices pack

Among the sectoral indices, Nifty Auto rose 1.49 percent, ending as the top sectoral index, followed by Nifty PSU Bank, which rose 1.06 percent.

Nifty Realty, Private Bank and Consumer Durables rose up to a percent. Nifty Bank ended with a gain of 0.50 percent.

On the other hand, Nifty Oil & Gas, Metal, FMCG and IT fell up to half a percent.

Expert's views on markets

"Investors were of the view that the easing price pressure would provide the central bank with leeway to pause the rate hike. However, the surprise production cut by OPEC+ has fuelled concerns about inflationary pressure, which may prompt central banks to remain hawkish," said Vinod Nair, Head of Research at Geojit Financial Services.

"The downside pressure in the market was mitigated as auto stocks rallied in response to the latest sales data, indicating a surge in demand. Additionally, India's manufacturing PMI exceeded expectations, demonstrating its swiftest growth rate in three months due to increased output and new orders," Nair said.

Technical views on markets

Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas highlighted that Nifty witnessed a day of consolidation and closed with marginal gains.

"On the daily charts, the Nifty for the whole day consolidated in the zone of 17,310 – 17,430 where the crucial Fibonacci retracement level (17,429) and the 40-day moving average (17,406) are placed. After a sharp move in a previous couple of trading sessions, consolidation is a healthy sign and provides an opportunity to enter for those who have missed out," said Gedia.

"The hourly momentum indicator has triggered a negative crossover, a sell signal. Considering that prices are trading around a hurdle level, the momentum indicator triggering a negative crossover can lead to consolidation. Overall, the uptrend is intact and this consolidation should be used as an opportunity to initiate fresh longs. On the upside, the immediate short-term target is placed at 17,500," Gedia said.

Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities highlighted that the Nifty is holding a bullish pattern on the daily charts, and it is continuously producing a higher bottom shape on intraday charts, which is broadly favourable.

"The market structure is positive in our opinion, but owing to briefly overbought conditions, we could see some profit taking at higher levels. Buying on dips and selling on rallies would be the best course of action for traders at the moment," said Chouhan.

"In the near future, the index's important support and resistance levels will be 17,300–17,250 and 17,500–17,550 respectively," said Chouhan.

Key market data

Article
Active stocks on April 3.
Article
Some of the top gainers on April 3.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.

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First Published: 03 Apr 2023, 03:32 PM IST