April 30th 2024 Stock Market analysis

Taking Stock: Nifty fails to hold on to record high; Sensex down 189 points

In a highly volatile session, the market relinquished all intraday gains and closed lower, driven by selling pressure in IT, metal, media, oil & gas sectors. The Sensex concluded down 188.50 points or 0.25 percent at 74,482.78, while the Nifty closed lower by 38.60 points or 0.17 percent at 22,604.80. Throughout April 2024, both the BSE Sensex and Nifty50 indices recorded a modest 1 percent increase.

Initially, the market saw a positive trajectory, extending gains as the day progressed, with the Nifty reaching a fresh high and the Sensex nearing its record level of 75,124.28, driven by auto, power, and realty stocks. However, a surge in selling activity during the final hour erased all gains. The Nifty Midcap 100 and Nifty Bank indices also hit intraday record highs.

Noteworthy gainers on the Nifty included M&M, Power Grid Corporation, Shriram Finance, Hero MotoCorp, and Bajaj Auto, while notable losers were Tech Mahindra, BPCL, JSW Steel, HCL Technologies, and Sun Pharma. Sector-wise, IT, metal, media, oil & gas, and healthcare sectors declined by 0.4-1 percent, while auto, power, and realty sectors surged by more than a percent each.

The broader market indices outperformed the benchmarks, with the BSE midcap index reaching a fresh high and closing 0.5 percent higher, while the smallcap index ended the day flat.

Technical Outlook on 2nd May

Nifty may expect an immediate support near 22497 then 22390 and resistances are 22711 then 22818. Now the nifty is looking at a mixed trade.

Bank Nifty may expect an immediate  support near 49034 then 48672 and resistances are  49758 then 50120. Now the bank nifty is looking at a mixed trade.

Derivative Outlook on 2nd May

PCR Analysis: Nifty PCR-OI has decreased with nifty has negative which shows CALL WRITING.

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

Cost of Carry Analysis: Nifty MAY month contract has ended in low compare with JUNE contract and high range compare with previous session which  indicates a mixed trade.

India VIX Analysis: India VIX has closed at 12.87 vs 12.24 (DoD) basis which shows increase in volatility‍

Manappuram Finance stock jumps 5% as unit Asirwad Microfinance gets SEBI nod for IPO‍

In the afternoon of April 30, shares of Manappuram Finance surged by about 5 percent to Rs 207 apiece following the announcement that its subsidiary, Asirwad Microfinance, received approval from SEBI to proceed with its initial public offering (IPO).

Previously, on February 16, the non-banking finance company (NBFC) had submitted an addendum to the proposed Rs 1,500-crore IPO of Asirvad Micro Finance to SEBI. Asirvad Micro Finance had initially filed a Draft Red Herring Prospectus (DRHP) with SEBI on October 5, 2023. However, SEBI had put the IPO on hold in January 2024.

Asirvad Micro Finance, which began its operations in 2008 with two branches in Tamil Nadu, has since expanded to 22 states and 4 union territories, boasting a network of 1,684 branches. The company serves 3.25 million active borrowers in its microfinance portfolio, which constitutes a majority of its assets under management. Additionally, it provides loans against gold and MSME loans.

SEBI had raised queries regarding the IPO's delay, with two out of three already resolved, according to CNBC TV-18 sources. The third query was anticipated to be resolved within 15-30 days.

The IPO is set to have a face value of Rs 10 per share, with a fresh issue of equity shares of up to Rs 1,500 crore, and no offer for sale component, as reported.