April 18th 2024 Stock Market analysis

Sensex and Nifty Sustain Losses for 4th Consecutive Day; Focus Shifts to Yield Trends and Q4 Results Season

In a session marked by high volatility, Indian equity indices struggled to maintain early gains and closed lower for the fourth consecutive day on April 18, with the Nifty slipping below 22,000.

At the closing bell, the Sensex had declined by 454.69 points or 0.62 percent to 72,488.99, while the Nifty was down by 152.05 points or 0.69 percent to 21,995.85.

Despite a positive start influenced by mixed global cues, the market experienced significant fluctuations throughout the day, ultimately settling near its lowest point.

Notable decliners on the Nifty included Apollo Hospitals, Nestle India, ONGC, Adani Enterprises, and Titan Company, whereas Bharti Airtel, Power Grid Corporation, Hindalco Industries, Bajaj Auto, and LTI Mindtree emerged as the top gainers.

With the exception of the telecom and media sectors, all other sectoral indices closed in the negative territory.

Technical Outlook on 19th April

Nifty is anticipated to find immediate support around 21,896 followed by 21,631, with resistances likely at 22,178 and 22,360. Currently, Nifty is showing signs of volatility trading and is in the process of recovering from lower levels.

For Bank Nifty, immediate support is expected around 46,645 and then 46,222, while resistances are projected at 47,493 and 47,917. Bank Nifty is also engaged in volatility trading and is showing signs of recovery from lower levels.

Derivative Outlook on 19th April

PCR Analysis: Nifty PCR-OI has increased with nifty has negative which shows PUT BUYING.

Open Interest Analysis: Nifty future April contract OI has increased with negative close which shows Short Buildup.

Cost of Carry Analysis: Nifty April month contract has ended in high compare with MAY contract and high range compare with previous session which indicates a recovery from lower levels.

India VIX Analysis: India VIX has closed at 13.04 vs 12.62 (DoD) basis which shows increase in volatility.

‍HDFC Life Surges: Q4 Net Profit Soars 15% to Rs 411 Crore, Exceeds Expectation

In its latest financial report for the January-March quarter of FY 2023-24, private sector insurer HDFC Life Insurance revealed a net profit of Rs 411 crore, marking a significant 14.8 percent increase from the previous year's Rs 358 crore. These results surpassed market expectations, which had predicted a 6.1 percent growth in profit to Rs 382.1 crore.

The insurer's net premium income also saw a notable uptick, reaching Rs 20,488 crore, a 5.4 percent increase from the year-ago quarter's Rs 19,426 crore.

Furthermore, HDFC Life's solvency ratio improved to 187 percent from 203 percent a year ago.

However, the company witnessed a decline in its annualised premium equivalent (APE), falling by 8 percent to Rs 4727 crore, contrary to market expectations of a 7 percent decrease. Similarly, the value of new business (VNB) margin dropped by 18.3 percent to Rs 1234 crore, falling short of market estimates of a 15 percent decrease. Despite these figures, HDFC Life announced a dividend of Rs 2 per share.

Following the release of these earnings, HDFC Life's shares were trading nearly 0.95 percent higher at Rs 610.20 apiece on BSE at 2.36 pm.

Additionally, the company disclosed changes in its board composition, with veteran banker Deepak Parekh stepping down from the role of Chairman and Non-Executive Director. Keki M Mistry has been appointed as the new Chairman of the Board. Furthermore, VK Viswanathan and Prasad Chandran will no longer serve as independent directors after completing their two consecutive terms of five years each on April 24, 2024. In their place, Venkatraman Srinivasan has been appointed as an Independent Director.

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