Sensex, Nifty settle at fresh closing highs; Q4 results, global equities eyed for cues

Benchmark indices Nifty and Sensex ended at fresh closing highs on April 8, tracking positive global cues and buying action in IT and auto names. Bank Nifty also scaled a fresh peak as investors turned optimistic yet again amid expectations of political continuity after the forthcoming Lok Sabha Elections’24 bolstering the overall economic momentum.

The buoyancy in sentiment continued, led by sectorial tailwinds and Q4 earnings growth expectations. According to analysts at Motilal Oswal, with size and growth in its wings, India’s capital markets are poised to embrace the "Amritkaal" going forward.

The Sensex ended 494.28 points or 0.67 percent higher at 74,742.50, and the Nifty closed 152.60 points or 0.68 percent up at 22,666.30. About 1,695 shares advanced, while 1,721 declined, and 118 shares were unchanged.

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Sectorally, energy, realty and metals gained the most. Of the 15 Nifty sectoral indices, 12 were trading in the green. The Oil & Gas and Realty indices gained over 1 percent, followed by Auto and IT indices which also witnessed buying action.

Selling in public sector banks pushed the Nifty PSU index in the red. Infra index was also trading with losses.

The strength of the US economy and labour market has also positively surprised experts and market participants. "Despite the scaling down of rate cut expectations the mother market continues to be buoyant, setting new records. This will provide global support for equity markets like India," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

The Q4 results season will kick start with TCS on April 12. "For IT companies, results will be tepid and, therefore, market response will depend on the management commentary. Results of financials will be good and this can push up Bank Nifty higher led by banking majors like HDFC Bank, ICICI Bank etc," said Vijayakumar.

Technical view

Nifty exceeded the previous all-time high of 22,619. However, the index has reached near the upper band of the rising wedge, which might act as resistance in the short term, said Rupak De, Senior Technical Analyst, LKP Securities.

"Over the short term, the index might consolidate within a range. On the lower end, support is placed at 22,500, below which the index might fall back into consolidation," he said.

The Bank Nifty exhibited indecision in the market with the formation of a doji candle on the daily chart, indicating a standoff between buyers and sellers at current levels. However, the overall sentiment remains bullish, contingent upon the index maintaining support above 48,000, where substantial open interest in put options exists, said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

"To sustain the upward trajectory, the index must decisively breach the 48,700 mark, paving the way for further gains towards the 49,500 to 50,000 range," Shah added.

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