Stock market recap: The market rally on Monday, 27 April, was driven by sectoral recoveries and easing geopolitical tensions.
Sun Pharmaceutical Industries surged more than 7%, leading Nifty gainers after announcing an $11.75 billion acquisition of Organon. The IT sector also rebounded, with the Nifty IT index rising nearly 2% as stocks such as Infosys, Wipro, and Tech Mahindra recovered on bargain buying after recent declines. Investor sentiment improved on reports of possible de-escalation in West Asia, including signals that Iran may reopen the Strait of Hormuz.
Volatility eased sharply, with the India VIX falling more than 6% to below 19, indicating reduced market fear. Broader markets outperformed, with the Nifty Smallcap 100 gaining 1.9% and the Midcap 100 rising 1.5%, pointing to broad-based participation.
Two stock recommendations by MarketSmith India for 28 April:
Buy: Sarda Energy & Minerals Ltd (current price: ₹613)
- Why it’s recommended: Strong presence in steel & power sector, integrated operations (iron to power), consistent revenue & profit growth, healthy operating margins, low to moderate debt levels, expansion & capex plans, benefit from infra & steel demand, and efficient cost management.
- Key metrics: P/E: 20.34, 52-week high: ₹639.75, volume: ₹143.85 crore
- Technical analysis: Cup-with-handle base breakout
- Risk factors: Cyclical nature of steel industry, dependence on commodity prices, power segment regulatory risks, raw material price volatility, high capex execution risk, environmental & policy risks, demand slowdown impact, export/import policy changes
- Buy: ₹609–620
- Target price: ₹710 in two to three months
- Stop loss: ₹570
Buy: Can Fin Homes Limited (current price: ₹915)
- Why it’s recommended: Strong parentage (Canara Bank backing), focus on housing finance segment, stable asset quality improvement, consistent revenue & profit growth, reasonable valuation (low p/e vs peers), healthy ROE (~16–17%), expanding branch network, digital transformation initiatives
- Key metrics: P/E:11.16, 52-week high: ₹971.50, volume: ₹45.33 crore
- Technical analysis: Trendline breakout
- Risk factors: Interest rate sensitivity (NBFC/HFC nature), high competition in housing finance, moderate growth vs peers, geographic concentration (south india heavy), asset quality/NPA risk, regulatory changes (RBI/NHB norms), dependency on housing demand cycle, liquidity & funding cost risk
- Buy at: ₹910–624
- Target price: ₹1,050 in two to three months
- Stop loss: ₹860
Nifty 50 performance on 27 April
Nifty 50 opened on a positive note and sustained buying interest throughout the session, closing higher. It opened at 23,945.45, rallied to an intraday high of 24,130.70, slipped marginally to a low of 23,936.20, and settled at 24,092.70, registering a healthy gain. The price action reflects resilience, with the index holding above opening levels and limiting downside, indicating steady accumulation.
A bullish candle with a relatively small lower shadow suggests buyers remained in control through the session. The move also extends the recent pullback recovery, as participants gradually rebuild long positions amid improving sentiment and lower volatility.
Technically, the RSI is hovering near 52, indicating a neutral stance with a mild upward bias, suggesting momentum is stabilising but not yet overbought. The MACD shows a bullish crossover, with the histogram turning positive, reflecting improving momentum after a corrective phase. However, it remains close to the zero line, signalling that the broader trend is transitioning rather than firmly bullish. The absence of divergence indicates price and momentum remain aligned. Overall, indicators suggest a gradual strengthening in bullish momentum, though confirmation would require sustained follow-through buying in coming sessions.
According to O’Neil’s methodology of market direction, the Indian equity market has transitioned to a “Confirm Uptrend” from a “Rally Attempt.”
Nifty Bank's performance
Nifty Bank opened on a positive note and sustained its upward bias through the session, closing higher. It opened at 56,162.60, touched an intraday high of 56,474.95, slipped to a low of 55,911.10, and settled at 56,264.30, gaining 0.31% on the day. The price action indicates a recovery after mild intraday volatility, with buyers stepping in at lower levels to defend support zones.
A relatively narrow-range bullish candle suggests controlled buying rather than aggressive accumulation. The index is attempting to stabilise after a recent corrective phase, with short-term structure hinting at early base formation as volatility gradually compresses.
From a momentum perspective, the RSI is hovering around 53, indicating a neutral-to-slightly positive bias without entering overbought territory, leaving room for further upside if buying strengthens. The MACD has recently given a bullish crossover and is trending higher, with histogram bars turning positive, signalling improving momentum after a prior downtrend. However, it remains below the zero line, suggesting the broader trend is still in recovery rather than a confirmed uptrend. Overall, indicators point to early-stage improvement in momentum, though sustained price follow-through is needed for confirmation.
Key support is seen at 55,800–56,000, aligned with recent swing lows and short-term demand zones. Immediate resistance is placed near 56,700–57,000, coinciding with the 50-DMA and prior breakdown levels, while stronger resistance lies around 57,200–57,300 near the 200-DMA. The index appears to be in a pullback recovery within a broader corrective structure.
A decisive breakout above 57,000 could trigger short covering and extend gains, while failure to hold above 56,000 may invite renewed selling pressure. Macro cues, including banking liquidity trends and rate expectations, will remain key drivers of directional conviction.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.
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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 making any investment decisions.