Stock market today: Sensex, Nifty extend winning streak; mid, smallcaps outperform

The domestic equity market continued enjoying positive momentum as the benchmark the Sensex extended its winning streak into the eighth consecutive session while the Nifty ended in the green for the sixth consecutive session on Tuesday.

Sensex has risen 3 per cent in the last eight sessions of gains while the Nifty, too, has gained about 3 per cent in its six sessions of gains.

The domestic market ended in positive territory despite weak global cues. While the key US markets closed in the red overnight, European stocks traded lacklustre today. Global market sentiment was cautious ahead of the Federal Reserve's policy meeting outcome on Wednesday, May 3.

Domestic market sentiment got a boost due to recent healthy macroeconomic numbers and March quarter earnings. As Mint reported, GST collection grew by 12 per cent in April to ₹1.87 lakh crore, the highest monthly mop-up since the rollout of the indirect tax regime.

Besides, manufacturing activity grew the fastest in four months in April, driven by healthy factory orders, milder price pressures, better global sales and improved supply chains, according to a survey report published on Monday.

Recent quarterly earnings of banking majors have been on the healthy side which has helped dispel the gloom created by lower-than-expected numbers of IT players. 

Sensex closed 242 points, or 0.40 per cent, higher at 61,354.71 while the Nifty ended the day at 18,147.65, up 83 points, or 0.46 per cent on Tuesday.

Shares of Infosys, Reliance Industries, Axis Bank, ICICI Bank and Maruti Suzuki remained the top contributors to the gains in the Sensex index.

Mid and smallcaps outperformed the benchmarks; the BSE Midcap and Smallcap indices rose 0.74 per cent and 0.63 per cent respectively.

As many as 145 stocks, including Bajaj Auto, Larsen & Toubro, Dr Reddy's Labs, Cholamandalam Investment and Finance Company, Indian Hotels Company, Nestle India and Siemens, hit their 52-week highs in intraday trade on BSE.

Meanwhile, crude oil prices slipped on concerns over interest rate hikes in the US. Weak economic data from China also weighed on sentiment. Brent Crude traded near the $79 per barrel mark around 3:45 pm IST.

Rupee, on the other hand, slipped 5 paise to close at 81.88 per dollar, Bloomberg data showed.

Top Nifty gainers and losers

As many as 29 stocks ended in the green while 21 ended lower in the Nifty index.

Shares of ONGC (up 3.37 per cent), Tech Mahindra (up 2.86 per cent) and HDFC Life Insurance Company (up 2.74 per cent) ended as the top gainers in the Nifty index.

On the flip side, shares of Hero MotoCorp (down 2.46 per cent), Sun Pharma (down 1.54 per cent) and UltraTech Cement (down 1.30 per cent) ended as the top losers in the Nifty pack.

Read more: Top gainers and losers on Sensex, Nifty 50 for 2 May trading session

IT, Metal, Oil & Gas stocks shine

Among the sectoral indices, Nifty Metal (up 1.42 per cent), Oil & Gas (up 1.16 per cent) and IT (up 1.14 per cent) ended as the top gainers.

Nifty Bank index ended 0.27 per cent higher at 43,352.10 with shares of IDFC First Bank, AU Small Finance Bank and Axis Bank as the top gainers.

Nifty Pharma (down 0.19 per cent), FMCG (down 0.13 per cent) and Realty (down 0.03 per cent) ended in the red.

Analysts' views on markets

Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities pointed out that India's relatively better macroeconomic growth has been adding fizz to the ongoing rally, with the robust April GST numbers further providing a fillip even as global markets remain sluggish to negative.

Vinod Nair, Head of Research at Geojit Financial Services underscored that Indian benchmark indices continued their upward momentum defying the trend in global peers, fuelled by strong Q4 earnings and favourable domestic macroeconomic data.

"The manufacturing PMI surpassed expectations due to an increase in new business, moderation in price pressures, and improved supply chain conditions. Additionally, the GST collection in April was the highest recorded to date. While Western markets traded with mild cuts ahead of the US Fed policy announcement, the domestic market benefited from strong inflows by FIIs," said Nair.

Technical views on markets

Chouhan pointed out that the rally in IT, metals and power stocks helped benchmark indices sail above crucial levels.

"Technically, the Nifty has formed a small candle while on intraday charts it is still holding higher bottom a formation which is broadly positive. In the near future, 18,050-18,000 would be the key support zone while 18,200-18,250 would act as an immediate hurdle for the bulls. However, below 18,000, the uptrend would be vulnerable," said Chouhan.

Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas said Nifty has reached the daily upper Bollinger band (18146) on the daily charts and that is one of the reasons why the Nifty consolidated in today’s trading session.

Gedia highlighted that the hourly momentum indicator has triggered a bearish crossover which indicates that there can be consolidation after a sharp runup.

"Overall, the positive outlook remains intact. Today Nifty has achieved our short-term target of 18,100 and hence we revised it upwards to 18,350 which coincides with the weekly upper Bollinger band. In terms of levels, 18,050 – 18,000 shall act as a crucial support zone while 18,180 – 18,200 shall act as an immediate hurdle zone for the Nifty," said Gedia.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.