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The Indian stock market witnessed a significant rebound on April 29th, erasing losses from the previous two sessions and propelling the Nifty 50 index back above the 24,300 mark. This resurgence was largely fueled by buying activity in heavyweight stocks, particularly Reliance Industries, and broad-based gains across most sectors, with the notable exception of IT stocks. The market's positive momentum was evident from the start of the week, with indices extending their gains throughout the day. The Nifty even surpassed the 24,350 level intraday, although profit-booking at higher levels tempered some of the gains before the market close. At the end of the trading session, the Sensex closed up by 1,005.84 points, or 1.27 percent, at 80,218.37, while the Nifty was up by 289.15 points, or 1.20 percent, at 24,328.50. The broader market also participated in the rally, with the BSE Midcap index rising by 1.3 percent and the smallcap index adding 0.4 percent, indicating a widespread positive sentiment among investors. Among the individual stocks that contributed significantly to the Nifty's gains were Reliance Industries, SBI Life, Bharat Electronics, Sun Pharma, and JSW Steel. These stocks emerged as the top gainers on the Nifty index, reflecting strong investor confidence in their respective business prospects and future growth potential. On the other hand, Shriram Finance, HCL Technologies, Eternal, UltraTech Cement, and HUL were among the top losers on the Nifty, indicating some degree of selling pressure in these counters. A notable feature of the day's trading session was the significant buying interest observed in defense-related shares. This surge in demand for defense stocks was attributed to heightened geopolitical tensions, which have increased the perceived value and importance of companies operating in the defense sector. Specifically, HAL (Hindustan Aeronautics Limited) and BEL (Bharat Electronics Limited) witnessed substantial gains, rising by up to 5 percent and 3 percent, respectively. This positive sentiment towards defense stocks suggests that investors anticipate continued growth and profitability in this sector, driven by increased government spending and demand for defense equipment and services. Analyzing the sectoral performance, it is evident that almost all sectors, except IT, ended the day in the green. The metal, realty, oil & gas, pharma, and PSU Bank sectors were particularly strong performers, registering gains of 1-3 percent each. This broad-based sectoral rally indicates a positive outlook for the overall Indian economy, with various industries contributing to the market's upward trajectory. The IT sector, however, experienced some headwinds, which could be attributed to concerns about global economic growth and the impact of technological disruptions on the industry.
The global market setup provided a mixed backdrop for the Indian market's performance. On Friday, Wall Street advanced, driven by investors' analysis of earnings reports and their search for signs of easing tensions in US-China trade relations. This positive momentum in the US market provided some support to global sentiment and potentially influenced the Indian market's rebound. European indices were also trading higher, further contributing to the overall positive global outlook. However, Asian shares ended the day with mixed results, reflecting uncertainty among investors regarding progress in US trade negotiations with the region and expectations of further stimulus measures from China. This mixed performance in Asian markets suggests that investors remain cautious about the global economic outlook and are closely monitoring developments in trade and monetary policy. In terms of stock-specific actions, several notable events occurred that influenced individual stock prices. Reliance Industries shares gained 5 percent on the back of healthy Q4 earnings, indicating that investors were pleased with the company's financial performance and future prospects. Conversely, SML Isuzu shares slipped 10 percent following the announcement that Mahindra & Mahindra (M&M) would acquire a nearly 59% stake in the company for Rs 555 crore. This decline in SML Isuzu shares suggests that investors may have perceived the acquisition as unfavorable for the company's minority shareholders. RBL Bank shares jumped 10 percent despite the bank reporting an 80.5 percent decline in Q4 profit. This seemingly counterintuitive reaction could be attributed to investors focusing on other positive aspects of the bank's performance or outlook, such as improvements in asset quality or future growth potential. L&T Finance shares declined nearly 3 percent despite reporting a 15 percent jump in Q4FY25 profit. This decline suggests that investors may have been disappointed with some other aspect of the company's performance, such as its asset quality or future growth prospects. Technical analysts also provided their insights on the market's outlook. Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty recovered smartly but remained within a consolidation phase, limited by the recent high of 24,360. He suggested that the Nifty might spend some more time around the current range unless that level is decisively breached. Above 24,360, he believes that the index could move towards 24,550, which represents the 61.80% Fibonacci retracement level of the previous fall. On the downside, he identified support at 24,000, below which the index might start falling towards 23,800 or even 23,350.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, observed that the benchmark indices bounced back sharply, with the Nifty ending 289 points higher and the Sensex up by 1006 points. He noted that almost all major sectoral indices traded in positive territory, with the Defense and Oil and Gas indices outperforming the broader market. From a technical perspective, he pointed out that the market formed a long bullish candle on the daily charts, which supports a further uptrend from current levels. However, he cautioned that the short-term market texture is still on the bullish side, but buying on intraday dips and selling on rallies would be the ideal strategy for day traders. He identified key support zones at 24200/79800 and 24100/79500, while crucial resistance areas were placed at 24400-24500/80500-80700. He warned that if the market falls below 24100/79500, the uptrend would become vulnerable. It is important to note that the views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to consult with certified experts before making any investment decisions. In conclusion, the Indian stock market experienced a strong rebound on April 29th, driven by positive global cues, strong sectoral performance, and stock-specific events. While technical analysts suggest a cautious bullish outlook, investors should exercise caution and consult with financial advisors before making any investment decisions. The market's future direction will depend on various factors, including global economic conditions, corporate earnings, and government policies. The focus on key support and resistance levels will be crucial for day traders looking to capitalize on intraday price movements. The surge in defense stocks amid geopolitical tensions underscores the importance of considering geopolitical factors when making investment decisions. Overall, the market's rebound provides a positive signal for the Indian economy, but investors should remain vigilant and informed to navigate the market's complexities and achieve their investment goals.