April 10th 2024 Stock Market analysis

‍Indian Equities End Higher on Wednesday, Lifted Mainly by Metal Stocks‍

Indian indices staged a rebound on Wednesday, driven by gains in metal stocks. Both the BSE Sensex and NSE Nifty opened higher and maintained their upward momentum throughout the session, with all sectors, except pharmaceuticals, closing in the green. However, at the close, the Sensex retreated by 354.45 points, or 0.5%, to 75,038.15, while the Nifty also dipped by 111.00 points, or 0.5%, to 22,753.80.

Coal India led the gains on Wednesday, with its shares rising by 4%, followed by Bharat Petroleum and Kotak Mahindra Bank. On the flip side, HDFC Life Insurance, Cipla, and Divi’s Laboratories emerged as the top losers.

‍Technical Outlook on 12th April‍

Nifty is likely to find immediate support levels near 22,701 followed by 22,651, with resistances anticipated at 22,804 and 22,851. Presently, Nifty is indicating a mixed trading scenario.

For Bank Nifty, immediate support levels are expected around 48,792 and 48,598, while resistances are likely at 49,180 and 49,374. Bank Nifty is also poised for a mixed trading session at the moment.

‍Derivative Outlook on 12th April‍

PCR Analysis: Nifty PCR-OI has increased with nifty has positive which shows PUT WRITING.

Open Interest Analysis: Nifty future April contract OI has decreased with positive close which shows Short Covering.

Cost of Carry Analysis: Nifty April month contract has ended in low compare with MAY contract and low range compare with previous session which indicates a negative bias.

India VIX Analysis: India VIX has closed at 11.11 vs 11.36 (DoD) basis which shows decrease in volatility.

IndiGo Surges to Become World's Third-Largest Airline by Market Capitalization as Shares Reach Record High

InterGlobe Aviation Limited's shares reached a fresh record high on April 10, climbing 5 percent to Rs 3,801 apiece during afternoon trading, marking the fourth consecutive day of gains. This surge catapulted the carrier to the position of the world's third-largest airline by market capitalization. Over the past month, a remarkable 22 % rally has propelled InterGlobe Aviation's total value to over Rs 1,46,000 crore ($17.5 billion), according to Bloomberg data. In December 2023, it surpassed United Airlines to claim the sixth spot globally. Data indicates that Delta Air and Ryanair Holdings hold the top two positions with market caps of $30.4 billion and $26.5 billion, respectively. In late March, several brokerages released bullish growth forecasts for the low-cost carrier following analyst meetings. UBS reiterated its "buy" rating on the stock, citing the robust growth prospects of the Indian aviation industry, increased market share in international travel, efficient cost structure, and operational excellence.

ICICI Securities maintains a bullish outlook on InterGlobe Aviation, highlighting favorable demand-supply dynamics and the company's strong position across various fronts, including its balance sheet strength, market share, management capabilities, and order book.

The brokerage emphasized that IndiGo has successfully achieved its FY24 targets across all parameters and is now aiming for early double-digit growth in capacity and passengers for FY25. ICICI Securities has set a price target of Rs 4,009 for the stock.

As of 3:04 pm, the stock was trading at Rs 3,798 on the NSE, marking a 4.5 percent increase from the previous close. Over the last year, the share price has surged by an impressive 99.7 percent.

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