The market rally continued for a fifth consecutive session on April 6, after the Reserve Bank of India's Monetary Policy Committee (MPC) surprisingly decided to keep the key interest rate unchanged.
At close, the Sensex was up 143.66 points or 0.24 percent at 59,832.97, and the Nifty was up 42.10 points or 0.24 percent at 17,599.20.
After a flat to negative start, the market turned positive after the MPC unanimously paused the rate hike and kept the repo rate unchanged at 6.5 percent, after six consecutive hikes since May 2022.
It maintained the 'withdrawal of accommodation' stance, highlighting the readiness to act if the situation so warrants.
The central bank has kept FY24 GDP growth projection at 6.50 percent and FY24 inflation projection at 5.2 percent.
On April 7, the market will remain shut on account of Good Friday.
Stocks and Sectors
| Index | Prices | Change | Change% |
|---|---|---|---|
| 59,832.97 | 143.66 | +0.24% | |
| Nifty 50 | 17,599.15 | 42.10 | +0.24% |
| Nifty Bank | 41,041.00 | 41.85 | +0.10% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Adani Enterpris | 1,754.05 | 56.05 | +3.30% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| HCL Tech | 1,091.85 | -19.35 | -1.74% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Auto | 12469.40 | 111.70 | +0.90% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty IT | 28764.50 | -212.70 | -0.73% |
Adani Enterprises, Bajaj Finance, Tata Motors, Bajaj Finserv and Sun Pharma were among the biggest gainers on the Nifty, while HCL Technologies, ONGC, Axis Bank, Tech Mahindra and ICICI Bank were among the losers.
Among sectors, the realty index added 3 percent, auto index gained 1 percent, while pharma, capital goods, oil & gas, power up 0.5 percent each. However, FMCG, IT and metal down 0.5 percent each.
The BSE midcap and smallcap indices rose 0.7 percent each.
100 stocks touched their 52-week high on the BSE, including Cholamandalam Investment, Glenmark Pharmaceuticals, DR. Reddy's Laboratories, ABB India, Abbott India, Ultratech Cement, Anant Raj, Neuland Laboratories, Atul Auto, Zydus Lifesciences and Ashiana Housing.
A long build-up was seen in Indian Energy Exchange, Cholamandalam Investment and Finance Company, Godrej Properties, while a short build-up was seen in Vedanta, Dabur India and Page Industries.
Among individual stocks, a volume spike of more than 200 percent was seen in Indian Energy Exchange, ABB India and Cholamandalam Investment and Finance Company.
Outlook for April 10
Ajit Mishra, VP - Technical Research, Religare Broking
Markets settled marginally higher in a volatile session, in continuation of the prevailing trend. After the initial downtick, Nifty surged strongly after the MPC’s unchanged stance on key rates, however profit taking around 17,600+ zone capped the upside. Finally, it settled at the 17,599 level; up by 0.24%.
A mixed trend on the sectoral front kept the traders busy wherein realty, financials and auto posted decent gains. The broader indices edged higher and gained in the range of 0.5%-0.8%.
The stability on the global front has eased some pressure and now the focus would shift to earnings for cues. We expect some consolidation in Nifty citing multiple hurdles around the 17,600-17,700 zone. However, the rotational buying across index majors would help in maintaining the positive tone. Meanwhile, participants should continue with a stock-specific approach with a focus on overnight risk management.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas:
The Nifty continued with the positive momentum and closed with gains for the fifth consecutive trading session. It has managed to close above the falling channel which is a positive sign.
The Daily Bollinger bands are contracting which indicates that the upside might be limited from heron. Also on the hourly momentum indicator we can observe negative divergence which indicates loss of momentum on the upside. After witnessing 700 points rally in the last five trading sessions a consolidation is highly likely.
Thus, considering the above factors we expect the Nifty to consolidate over the next few trading sessions and any dip towards the support zone of 17,500 – 17,430 should be used as an opportunity to create fresh long positions.
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