NSE Nifty50 on positive outlook in contrast with global news
By Vinu Lal
01:49, 22 April 2022
The NSE Nifty50 Index could stay positive on Friday, even as geopolitical issues and rising consumer price inflation continue to haunt, analysts told Capital.com.
“The short-term trend of Nifty continues to be positive. A sustainable move above the immediate resistance of 17,450-17,500 levels could open the next upside levels of around 17,800-18,000 levels in the near term. Immediate support is placed at 17,250,” Nagaraj Shetti, technical research analyst at HDFC Securities said.
“Friday is likely to see a quiet start to the day. The levels of 17,440 and 17,500 will act as probable resistance points. The supports come in at 17,280 and 17,185 levels. The 200-DMA (daily moving average) currently stands at 17,185 and is likely to remain a crucial support point for the Nifty in the near term on a closing basis,” a CapitalVia Global Research note prepared exclusively for Capital.com said.
“We are of the view that the short-term texture has changed to positive, but due to over-stretch intraday formation, range-bound activity is not ruled out,” Kotak Securities head of equity research (retail) Shrikant Chouhan said.
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Hot stocks for Friday
HCL Technologies (HCLTECH) will be in focus after the large-cap technology major posted a 4.38% quarter-on-quarter rise in consolidated profit at INR35.93bn ($480m) for the three-month period ended 31 March. HCL is aiming to grow 12-14%, quite in line with its real growth for last year, a tad lower than Infosys guidance though.
Revenue from operations rose 1.19% quarter-on-quarter to INR225.97bn, compared with INR223.31bn posted in the December 2021 quarter.
Nestle India management on Thursday indicated that raw materials costs are only going to rise going forward even as it declared a drop in profit for the second time in several quarters. The company’s earnings came in during market hours and its share prices closed down 0.22% at INR18,175 on Thursday.
The Maggi instant noodles maker said the cost of key raw and packaging materials is witnessing 10-year highs amid supply constraints, a moneycontrol report said.
Earnings for Friday
Hindustan Zinc (HINDZINC), MMTC (MMTC), Sundram Fasteners (SUNDRMFAST) and Tata Metaliks (TATAMETALI) will be announcing their earnings on Friday. S&P Global firm CRISIL will be holding its annual shareholders’ meeting.
Nifty closes up
On Thursday, Nifty closed up 1.49% at 17,392.60, with all its indexes closing in the green. Market heavyweights such as Reliance Industries (RELIANCE), Maruti Suzuki India (MARUTI), Tata Consultancy Services (TCS), Housing Development Finance Corporation (HDFC) and Mahindra & Mahindra (M&M) rallied during the day.
“Firm global cues triggered a strong start which further strengthened as the day progressed. Consequently, the Nifty index ended with strong gains of 1.5% to close at 17,411 levels. All the sectoral indices, barring metal, ended higher wherein auto, IT and banking were the top gainers.
“The broader markets too witnessed healthy traction wherein midcap and smallcap ended higher by 1.1% and 1.7%, respectively,” Ajit Mishra, vice president (research) at Religare Broking said.