April 25th 2024 Stock Market analysis

Market Rebounds Strongly as PSU Banks Surge to Record Highs

The Indian market staged a remarkable recovery from intraday lows, extending its winning streak for the fifth consecutive session on April 25. However, last-hour profit booking limited the gains. At close, the Sensex rose by 486.50 points, or 0.66 %, to reach 74,339.44, while the Nifty climbed by 167.90 points, or 0.75 %, closing at 22,570.30. The market initially opened lower due to weak global cues and traded flat in the first half, but a strong surge in the second half, driven by buying across sectors, particularly in PSU banks, propelled the indices upward. 

Top Nifty gainers included Axis Bank, SBI, Dr. Reddy's Labs, JSW Steel, and Nestle India, while notable losers were Kotak Mahindra Bank, LTI Mindtree, HUL, SBI Life Insurance, and Titan Company. With the exception of realty, all sectoral indices closed in the green, with the PSU Bank index surging nearly 4 percent to reach a record high of 7,421.20.

BSE midcap and smallcap indices each gained 0.5 %. Noteworthy volume spikes were observed in L&T Finance Holdings, Zee Entertainment Enterprises, and Hindustan Copper, while long build-up was witnessed in Multi Commodity Exchange of India, Aditya Birla Capital, and Bharat Forge. Conversely, short build-up was seen in Kotak Mahindra Bank, Dalmia Bharat, and Indian Hotels.

Technical Outlook on 26th April

Nifty is poised to find immediate support levels around 22,410 and then 22,250, with resistances anticipated at 22,650 and then 22,730. Currently, Nifty is showing signs of profit booking from elevated levels.

For Bank Nifty, immediate support is likely around 48,050 and then 47,606, while resistances are expected at 48,938 and then 49,382. Bank Nifty is currently witnessing profit booking from its recent highs.

Derivatives Outlook on 26th April

PCR Analysis: Nifty PCR-OI has decreased with nifty has positive which shows CALL BUYING.

Open Interest Analysis: Nifty future MAY contract OI has increased with positive close which shows Long Buildup.

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

India VIX Analysis: India VIX has closed at 10.73 vs 10.28 (DoD) basis which shows increase in volatility.

IndusInd Bank Reports 15% Jump in Q4 Net Profit to Rs 2,349 Crore, Declares Rs 16.50 Dividend

In the January-March quarter of FY 2023-24, IndusInd Bank reported a net profit of Rs 2,349 crore, marking a 15% increase from the Rs 2,043 crore recorded in the same period last year, surpassing market estimates of Rs 2,261 crore. The bank's net loans grew by 18%, outpacing a 14% growth in deposits, as stated in its quarterly update earlier this month. Gross non-performing assets (NPA) stood at 1.92%, down from 1.98% in the corresponding quarter of the previous year, while net NPA improved to 0.57% from 0.59% year-on-year. Additionally, the bank declared a dividend of Rs 16.50 per equity share of Rs 10 face value on April 25. Net interest income increased by 15% to Rs 5,376 crore, while the net interest margin stood at 4.26% compared to 4.28% last year. Sumant Kathpalia, MD & CEO of IndusInd Bank, announced plans to expand branches from 2,800 to 3,500 within the next two years, attributing increased operating expenses to the hiring of approximately 11,000 employees in FY24. Operating expenses for the quarter ended March 31, 2024, rose by 24% to Rs 3,803 crores compared to Rs 3,066 crore in the corresponding quarter of the previous year.

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