May 2nd 2024 Stock Market analysis

Taking Stock: Market ends marginally higher; auto, power, metals shine

On May 2, the Indian markets rebounded from previous-session losses, closing higher as investors digested the Fed Chair's comments on the rate hike following the unchanged key interest rates decision on May 1. The Sensex ended up 128.33 points, or 0.17 percent, at 74,611.11, while the Nifty closed up 43.35 points, or 0.19 percent, at 22,648.20. Despite opening losses, the market trended higher throughout the session, with the Nifty crossing 22,700 fueled by broad sectoral buying, excluding realty and banking. However, second-half selling pressure trimmed some intraday gains. Top Nifty gainers included BPCL, Power Grid Corporation, Asian Paints, Bajaj Auto, and Tata Motors, while Kotak Mahindra Bank, Bharti Airtel, Tata Consumer, Axis Bank, and HDFC Life were among the losers. Auto, metal, oil & gas, and power sectors surged by one percent each, while the bank and realty indices closed marginally lower. The broader indices outpaced benchmarks, with the BSE midcap index hitting a fresh high and closing with a one percent gain, and the smallcap index rising 0.3 percent. Notable volume spikes were observed in Dabur, Indiamart Intermesh, and Bosch, with long build-up seen in Cholamandalam Investment and Finance Company, REC, and Indiamart Intermesh, while short build-up was noted in Godrej Properties, IGL, and Kotak Mahindra Bank. Over 250 stocks touched their 52-week high on the BSE, including REC, Ashok Leyland, BHEL, CESC, Federal Bank, Grasim Industries, IRCTC, Jindal Steel, M&M, Mangalam Cement, MOIL, NTPC, Petronet LNG, Polycab, Power Grid Corporation, Raymond, Sobha, among others.

Indian markets erased some of the previous-session losses and ended higher with Nifty around 22,650 on May 2, as market participants digested the Fed Chair's comments on rate hike after keeping key interest rates unchanged on May 1 meeting.

Technical Outlook on 3rd May

Nifty is likely to find immediate support around 22,577 followed by 22,506, with resistances anticipated at 22,719 and then 22,790. The current outlook suggests Nifty may trade within a positive range. Meanwhile, Bank Nifty could encounter immediate support near 49,029, followed by 48,827, while resistances are seen at 49,433 and then 49,635. Presently, Bank Nifty is poised for a mixed trading session.

Derivative Outlook on 3rd May 

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

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 high compare with JUNE contract and high range compare with previous session which indicates a positive range bound trade.

India VIX Analysis: India VIX has closed at 13.45 vs 12.87 (DoD) basis which shows increase in volatility.

Ashok Leyland Shares Surge to New High Amid Robust April Sales, Up 13% in One Week

Ashok Leyland Shares Hit All-Time High on Strong April Sales; M&HCV Bus Sales Surge 171%

At Rs 200, Ashok Leyland shares reached a historic peak on May 2, propelled by the company's combined sales of M&HCV and LCV units, totaling 14,271 units, marking a 10 percent year-on-year increase. M&HCV bus sales notably surged by 171 percent, with 2,074 units sold. The total M&HCV segment witnessed a robust 16 percent growth, selling 8,611 units compared to April 2023. Despite a marginal two percent decline in LCV sales, Ashok Leyland's domestic vehicle sales rose by 9 percent to 13,446 units. While truck sales experienced a slight dip, the company reported a 115 percent jump in bus sales for both domestic and export markets, reaching 2,371 units.

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