April 8th 2024 Stock Market analysis

Nifty Achieves Record High, Approaching 22,700 Mark; Expected to Consolidate Within Range

At the beginning of the week, the market achieved new milestones as the Nifty 50 index edged closer to 22,700 on April 8, buoyed by positive global cues and widespread buying across sectors.

Starting the session around 22,600 after a flat close in the previous session, the Nifty50 extended gains throughout the day, reaching a new intraday high of 22,697.30. However, profit booking at higher levels led to a partial retracement of gains.

Closing 152.60 points or 0.68 % higher at 22,666.30 from the previous close, the index formed a bullish candle on the daily chart.

Technical Outlook on 9th Apr

The Nifty is anticipated to find immediate support around 22593, followed by 22520, with resistances noted at 22739 and 22812. Currently, it appears to be poised for a range-bound trade. Similarly, the Bank Nifty is likely to encounter immediate support levels at 48435 and 48289, while facing resistances at 48727 and 48873. Presently, the Bank Nifty is also indicating a range-bound trading scenario.

Derivative Outlook on 9th Apr

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

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

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

India VIX Analysis: India VIX has closed at 1161 vs 11.34 (DoD) basis which shows increase in volatility.

Exide Shares Surge 12% as Hyundai and Kia Partner for EV Battery Localization

South Korean automotive giants Hyundai Motor Company (HMC) and Kia Corporation have announced a collaboration with Exide Energy Solutions Ltd, an Indian battery manufacturer, to localize electric vehicle battery production in India. This move has triggered a positive response in Exide Industries' shares, which surged over 12% to reach a 52-week high of Rs 363. Trading volumes also saw a significant uptick, with one crore shares changing hands on the exchanges, notably higher than the one-month daily average of 22 lakh shares.

The Hyundai Motor Group stated that Hyundai and its affiliate Kia Corporation have entered into a Memorandum of Understanding (MOU) with Exide Energy Solutions Ltd as part of their electric vehicle (EV) expansion strategies.

Exide Energy Solutions (EES) operates as a wholly-owned subsidiary of Kolkata-based Exide Industries Ltd, boasting over 75 years of experience and market dominance in lead-acid battery supply in India.

The statement added that Hyundai Motor and Kia aim to localize their EV battery production, specifically focusing on lithium-iron-phosphate (LFP) cells, aligning with the expansion of their EV plans for the Indian market.

In light of India's pivotal role in vehicle electrification, driven partly by the government's carbon neutrality objectives, securing cost competitiveness through localized battery production is paramount," stated Heui Won Yang, President and Head of Hyundai Motor and Kia's R&D Division.

Through our global partnership with Exide Energy Solutions Ltd, we anticipate gaining a competitive edge by integrating locally produced batteries into Hyundai Motor and Kia's forthcoming EV models in the Indian market.

Hyundai Motor Group highlighted that this strategic collaboration with Exide Energy marks the outset of Hyundai Motor Company and Kia's endeavors to expand their exclusive battery development, production, supply, and partnerships within the Indian market.

Hyundai Motor India has already disclosed its plan to introduce a high-volume EV model in 2025, with the current offerings in the EV segment being the IONIQ5 and Kona models, while Kia India offers the EV6 model.

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