April 26th 2024 Stock Market analysis

Sensex and Nifty 50 Break 5-Day Winning Streak; Mid and Small Caps Reach Record Highs

In a volatile session on April 26, Indian equity indices ended lower, breaking a five-day gaining streak, with the Nifty falling below 22,400. The Sensex closed down 609.28 points or 0.82% at 73,730.16, while the Nifty dropped 150.30 points or 0.67% to 22,420. Despite mixed global cues, the market initially opened positively but erased all gains in the early hours, trading in the negative zone for the remainder of the day before closing near the day's high. Notable losers on the Nifty included Bajaj Finance, Bajaj Finserv, Nestle India, IndusInd Bank, and M&M, while Tech Mahindra, Divis Labs, LTI Mindtree, Bajaj Auto, and BPCL emerged as gainers. Except for auto, bank, and capital goods, all other sectors ended in the green, with oil & gas, healthcare, realty, and media showing gains of 0.3-1%. The BSE midcap index rose by 0.8%, and the smallcap index increased by 0.3 percent. Among individual stocks, notable volume spikes of over 100% were observed in L&T Technology Services, Aditya Birla Fashion, and SAIL.

‍Technical Outlook on 29th April

Nifty could find initial support levels around 22,302 and then 22,185, with resistance levels anticipated at 22,536 and subsequently 22,653. Currently, Nifty appears poised for a rebound from lower levels.

For Bank Nifty, immediate support is likely near 47,906, followed by 47,611, while resistance levels are expected around 48,496 and then 48,791. Bank Nifty is also showing signs of potential recovery from lower levels.

‍Derivative Outlook on 29th April

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

Open Interest Analysis: Nifty future MAY contract OI has decreased with negative close which shows Long Unwinding.

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 recover from lower levels.

India VIX Analysis: India VIX has closed at 10.93 vs 10.73 (DoD) basis which shows increase in volatility.

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HCLTech Reports Marginal Increase in Q4 Net Profit at Rs 3,986 Cr, Declares Rs 18 Dividend

HCL Technologies (HCLTech) reported a net profit of Rs 3,986 crore in Q4FY24, a slight increase from Rs 3,983 crore in the year-ago period, alongside declaring a dividend of Rs 18 per share. The company achieved a 7.1% revenue growth to Rs 28,499 crore in Q4FY24, compared to Rs 26,606 crore in the previous year. HCLTech's CEO & Managing Director, C Vijayakumar, highlighted the company's strong performance amidst challenging times, with significant growth in operating cash flow (OCF) and free cash flow (FCF). The firm also announced an interim dividend of Rs 18 per share, with May 7, 2024, set as the record date. Furthermore, Prateek Aggarwal, Chief Financial Officer, emphasized the resilience of HCLTech's business model, citing robust revenue and earnings growth for FY24, with a focus on cash generation and expansion of Return on Invested Capital (ROIC). HCLTech expects its constant currency revenue growth for FY25 to be in the range of 3-5%.