March 28th 2024 Stock Market analysis

Market Brink: Final Trading Day of FY24 Nears Record High

The market closed FY24 on a high note, extending its winning streak for the second consecutive session on March 28, which also marked F&O expiry day. Led by broad-based buying across sectors, the Sensex surged 655.04 points or 0.90 percent to reach 73,651.35, while the Nifty climbed 203.20 points or 0.92 percent to settle at 22,326.90. Despite initial gains and a push towards record levels with the Nifty and Sensex surpassing 22,500 and 74,000 levels respectively during intraday trading, the momentum was tempered by final-hour selling, resulting in a partial erosion of gains. Notable gainers on the Nifty included Bajaj Finserv, Grasim Industries, Hero MotoCorp, Bajaj Finance, and Eicher Motors, whereas Shriram Finance, Tech Mahindra, Axis Bank, Reliance Industries, and Britannia Industries were among the losers. Across the board, all sectoral indices closed in positive territory, with auto, healthcare, metal, power, and capital goods each recording gains of 1 percent, while oil & gas, Information Technology, bank, realty, and FMCG sectors saw a 0.5 percent increase.

Technical Outlook on 1st April

The Nifty has sustained a bullish momentum, maintaining positivity unless it breaches the 22,208 level. If it does break below 22,208, a further downward rally towards the 21,880 range is anticipated in the positional outlook.

Meanwhile, the Bank Nifty has been trading within a range of 45,227 to 47,662 with moderate volatility expected ahead in the positional context.‍

Derivative Outlook on 1st April‍

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

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 mixed trade.

India VIX Analysis: India VIX has closed at 12.83 vs 12.70 (DoD) basis which shows increase in volatility.

‍Avenue Supermarts Shares Surge 2% as CLSA Raises Target Price to Rs 5,307‍

Avenue Supermarts Ltd. saw its shares surge by more than 2 percent on the afternoon of March 28, following brokerage CLSA's decision to raise the target price to Rs 5,307 from Rs 5,107, citing the company's expansion efforts. Retaining its "buy" rating on the D-Mart operator, CLSA's updated target price suggests an 18 percent upside from the current market value of the stock. The brokerage highlighted Avenue Supermarts' aggressive store openings in the March quarter, surpassing expectations. Additionally, it noted that the company's ability to adjust pricing strategies in response to inflation-driven increases in palm oil and crude oil prices would be crucial for its performance in FY25. This analysis follows CLSA's recent initiation of coverage on Avenue Supermarts on March 21 with a "buy" rating, emphasizing growth prospects in untapped markets. Avenue Supermarts has demonstrated consistent gains in seven of the last eight trading sessions. As of 3:10 pm, the stock was trading at Rs 4,521.80 on the NSE, marking a 2.3 percent increase from the previous close. Over the past six months, the stock has shown a 22 percent gain, while year-to-date it has surged by 35 percent.