Indian Stock Market Outlook for April 26, 2023
The Indian stock market is expected to take a breather on Friday, April 26, 2023, after a five-day rally that saw the S&P BSE Sensex gain nearly 1,900 points. The global mood has turned cautious due to a sharp spike in US bond yields.
On Thursday, the Sensex and Nifty staged a strong recovery, ending with gains of 0.7% each, led by a rally in bank stocks and short-covering due to the Nifty F&O monthly expiry.
Rajesh Bhosale, Angel One: Recommends maintaining a positive outlook and capitalizing on buying opportunities during market dips. He expects the former resistance levels around 22,500 – 22,450 to act as immediate supports, with 22,300 as a pivotal support level. On the upside, Nifty could approach the previous high of 22,775, with 22,700 as immediate resistance.
Recommends that the Bank Nifty is on the verge of sustaining the 48,500 levels. If it closes above this level, the rally could extend to 49,000-49,500. Short-term support levels for the Bank Nifty are 48,000 and 47,000, with resistance at 49,000 and 49,500. For the Nifty, he expects short-term support at 22,500 and 22,300, with resistance around 22,780 and 23,000.
Global Cues: Overnight, US stocks fell under selling pressure due to disappointing forecasts from Meta, hammering the tech sector. Japan's yen sank through 155 per dollar for the first time since 1990. Tepid US GDP data and persistent inflation saw US Treasury yields rise to fresh 5-month highs, lowering hopes of a near-term Fed rate cut.
Several prominent companies are scheduled to announce their Q4 results on Friday, including Aditya Birla Sun Life AMC, Autl, Bajaj Finserv, Bajaj Holdings, CSB Bank, Eveready, Force Motors, HCL Technologies, Indiabulls RealEstate, KSB, Bank of Maharashtra, Mahindra Lifespace, Maruti, Mastek, Mahindra Holidays & Resort, Motilal Oswal Financial Services, NDTV, Paisalo Digital, SBI Card, SBI Life, Shakti Pumps, Shriram Finance, and Usha Martin.
Shares of IndiGo are expected to garner investor interest after the airline placed an order with Airbus for 30 A350-900 widebody aircraft at a deal estimated to be between $4 billion and $5 billion.
Overall, the Indian stock market is expected to remain volatile on Friday, with global cues and earnings announcements playing a key role in determining the direction.