April 9th 2024 Stock Market analysis

Nifty Continues Record Rally: Surpasses 22,750 for the First Time; Faces Resistance at 22,740-22,770

Indian benchmark indices, the Sensex and the Nifty, surged to fresh all-time highs on April 9th but relinquished their gains as profit booking intensified ahead of the release of key inflation figures for both India and the US. By the close of trading, the Sensex retreated 58.80 points, or 0.08%, settling at 74,683.70, after reaching a record peak of 75,124.28 earlier in the day. Similarly, the Nifty retreated from its new high of 22,768.40 to finish 24.50 points, or 0.11% lower, at 22,641.80.

 Among the top Nifty performers were Apollo Hospitals, Hindalco, ICICI Bank, and Infosys, while Titan Co, Hero MotoCorp, Coal India, and Reliance Industries faced losses. Across sectors, auto, capital goods, FMCG, energy, infra, oil and gas, and pharma closed with losses ranging from 0.3 to 1%, whereas banks, metals, and realty indices rose by 0.3 to 1%. Additionally, the BSE midcap index slipped by 0.5%, and the smallcap index shed 0.2%.

Technical Outlook on 10th April

Nifty may expect an immediate support near 22564 then 22486 and resistances are 22720 then 22798. Now the nifty is looking at a negative range bound trade.

Bank Nifty may expect an immediate support near 48537 then 48344 and resistances are  48926 then 48999. Now the bank nifty is looking at a negative range bound trade.

Derivative Outlook on 10th April

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

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 low compare with MAY contract and low range compare with previous session which indicates a negative bias.

India VIX Analysis: India VIX has closed at 11.36 vs 11.61 (DoD) basis which shows decrease in volatility.

‍Gold Continues Soaring: Achieves Eighth Consecutive Record High

Gold prices surged to a record high for the eighth consecutive session on Tuesday, rising by 1.1% to $2,363.42 per ounce by 0936 GMT, reaching a peak of $2,365.09. The momentum was fueled by fund activity and heightened geopolitical tensions. Ole Hansen, Saxo Bank's head of commodity strategy, noted that traders continue to employ a "buy-on-dip" strategy amidst strong underlying momentum.

 Geopolitical risks, particularly related to Russia/Ukraine and the Middle East, provided additional support, alongside concerns about persistent inflation. The focus now shifts to the U.S. Federal Reserve's policy meeting minutes and inflation data due on Wednesday for potential signals on future interest rate trajectories. Despite typically dampening effects, gold remains resilient against elevated interest rates this month. Spot silver also saw gains, rising 1.0% to $28.11 per ounce. BofA analysts predicted a bullish outlook for gold, projecting a potential rally to $3,000 per ounce by 2025, which could also uplift silver above $30 within the next year. Platinum and palladium also experienced gains, with platinum rising 2.3% to $980.9 and palladium increasing 1.7% to $1,060.75. BofA suggested that palladium prices may trend lower in the longer term compared to platinum due to dominance in auto catalyst demand.