April 19th 2024 Stock Market analysis

Market Bounces Back, Ending 4-Day Losing Streak; Banks and Metals Lead the Recovery

The benchmark indices rebounded from morning lows, snapping a four-day losing streak in another volatile session on April 19, supported by gains in banking and metal sectors. At close, the Sensex surged 599.34 points, or 0.83 percent, to 73,088.33, while the Nifty climbed 151.20 points, or 0.69 percent, to 22,147. Despite opening lower due to reports of Israel's retaliatory missile strike on Iran and trading lower in the first half, the market reversed course in the afternoon session, wiping out losses to finish near the day’s high.

However, for the week, both the Sensex and the Nifty50 fell by 1.5 percent each. Among the top gainers on the Nifty were Bajaj Finance, M&M, HDFC Bank, Maruti Suzuki, and JSW Steel, while losers included Bajaj Auto, HCL Technologies, Divis Labs, TCS, and Nestle India. In terms of sectors, bank and metal indices rose by a percent each, and the FMCG index increased by 0.5 percent, whereas healthcare, IT, power, and realty sectors were down by 0.3-0.6 percent. The BSE midcap index declined by 0.4 percent, while the smallcap index remained flat.

Technical Outlook on 22nd April

Nifty is poised to find immediate support around 21,947, followed by 21,747, with resistances anticipated at 22,347 and 22,547. Currently, Nifty appears primed for profit booking from its recent highs.

Similarly, Bank Nifty could find immediate support near 47,030, then 46,486, while resistance levels are expected at 48,118 and 48,662. Presently, Bank Nifty seems poised for profit booking following its upward movement.‍

Derivatives Outlook on 22nd April‍

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

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

Cost of Carry Analysis: Nifty APR month contract has ended in low compare with MAY contract and negative range compare with previous session which indicates a profit booking from higher levels.

India VIX Analysis: India VIX has closed at 13.46 vs 13.04 (DoD) basis which shows increase in volatility.

‍Wipro's Q4 Net Profit Declines by 8% to Rs 2,835 Crore

On April 19, Wipro Ltd reported a net profit of Rs 2,835 crore for the fiscal fourth quarter, down from Rs 3,074.5 crore in the same period last year. The software services company recorded revenue of Rs 22,208.3 crore for the quarter ended March 31, compared to Rs 23,190.30 crore in the corresponding period last year, according to an exchange filing. Analysts, based on an average of 13 brokerage estimates, had projected a profit of Rs 2,748 crore on revenue of Rs 22,117 crore. Wipro's shares on BSE closed 1.74% higher at Rs 452.1 apiece.