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Global stocks, RIL, Gift Nifty: All you need to know before mkt opens today

Stock market preview Tuesday April 23: Gift Nifty hints at gap-up open after US market ended on a strong note. RIL, Tata Consumer, Tata Elxsi, MCX and M&M Finance in focus today.

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Rex Cano Mumbai

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All you need to know before Sensx, Nifty opens for trade on Tuesday: Indian stock markets are likely to extend the winning run on Tuesday, aided by positive cues from global peers. On Tuesday, the focus will be on Q4 results and the HSBC Composite, HSBC Manufacturing and HSBC Services PMI data.

On Monday, the Nifty ended with a gain of 189 points at 22,336, largely led by ICICI Bank and Larsen & Toubro. The S&P BSE Sensex vaulted 560 points to 73,648.

Analysts attributed the gains to likelihood that the Israel-Iran confrontation may not escalate, however cautioned on high bond yields. 

Vaibhav Vidwani, research analyst at Bonanza Portfolio says that the market may be burdened by the elevated US bond yields, as the 10-year yield has surged to 4.65 per cent, perhaps prompting more selling by foreign institutional investors. Despite their generally reasonable values, large caps will be under pressure since they make up the majority of the AUM of FIIs. 

Technically, the recent formation of a Piercing Line, a bullish technical setup in the daily chart, has further solidified Nifty momentum. The NSE index has closed above the previous critical resistance level of 22,300 overcoming the 50 per cent Fibonacci retracement, indicating a bullish sentiment, said Om Mehra, Technical Analyst at SAMCO Securities in a note.

The Nifty is now above the 50-day moving average (DMA). The immediate support remains at 22,150 while resistance remains in the 22,500-22,550 zone, Om Mehra added.

At 07:00 AM; Gift Nifty quoted around 22,450 suggesting a likely gap-up open for the NSE Nifty 50 index.

Meanwhile here are the key factors that shall guide the Indian stock market sentiment on Tuesday.

Reliance stock to react to Q4 results: The Mukesh Ambani-led firm reported 1.8 per cent year-on-year (YoY) decline in its consolidated net profit at Rs 18,951 crore, owing to higher tax expenses.  Revenue in Q4 grew by 11.1 per cent YoY to Rs 2.37 trillion, while tax expenses jumped 139 per cent YoY to Rs 6,577 crore. READ MORE

Key earnings today: ICICI Prudential Life, Mahindra & Mahindra Financial Services, MCX, Tata Consumer Products and Tata Elxsi are among the16 companies scheduled to report March quarter earnings on Tuesday.

Global cues: The US market ended higher last night ahead of earnings of major firms such as Microsoft, Alphabet. 

Dow Jones jumped 0.7 per cent, Nasdaq soared 1.1 per cent and the S&P 500 added 0.9 per cent. Tonight, traders will also track the S&P Global Composite, Manufacturing and Services PMI data to gauge to economic activity growth ahead of the upcoming Federal Reserve Policy meeting on May 1.

In Asia this morning, Japan’s Nikkei advanced 0.6 per cent, and Malaysia’s Kospi added 0.3 per cent.

Among other commodities, Gold futures witnessed a steep fall to $2,350 per ounce. Brent Crude Oil, however, remained steady around the $87.50 levels.

Stocks in F&O ban period: Fresh positions are now allowed in derivatives of Biocon, Hind Copper, Piramal Enterprises, SAIL, Vodafone Idea and Zee Entertainment on Tuesday. Fresh positions if taken will attract penalty from the stock exchange.

Fund flows: Foreign Institutional Investors (FIIs) were net sellers of stocks worth Rs 2,9154 crore on Monday. On the other hand, Domestic Institutional Investors (DIIs) net purchased shares to the tune of Rs 3,543 crore.

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First Published: Apr 23 2024 | 7:09 AM IST

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