Trade Setup For April 12: Analysts Eye 23,000 Mark For Nifty Amid Strong Global Cues

India's benchmark Nifty 50 may breach the psychological level of 23,000 on Friday given the continued buying momentum across sectors amid a bullish sentiments in the global markets.

The rotational buying across sectors and stability at the global front is helping the Nifty to inch higher every session, according to Ajit Mishra, senior vice president, technical research at Religare Broking Ltd. The beginning of the earnings season will trigger stock-specific volatility, so participants should plan their positions accordingly, Mishra said.

"We are eyeing the 22,850–23,100 zone in Nifty ahead and expect the 22,350–22,500 zone would act as a strong support in case of any profit taking."

The US CPI print came in higher than expected at 3.5%, raising doubts on the Fed's pivot on interest rate in June policy. The US 10-year bond yield spiked 20 basis point after the release of the inflation.

The index has formed a good base around 22,500 levels and as long as the index holds the support of 22,500, the current rally may continue up to 23,000 levels, according to Asit C Mehta Investment Intermediates Ltd.

For Bank Nifty, as long as the index holds above 48,640, the rally could extend towards 49,500–50,000 levels, Asit C Mehta Investment Intermediates said. "Short-term support levels for Bank Nifty are seen at 48,800 and 48,640, with resistance levels at 49,500 and 50,000."

Examining the components of Bank Nifty, State Bank of India and ICICI Bank Ltd. have shown breakout signals and are in a strong uptrend, which could drive Bank Nifty to higher levels, said Aditya Arora, founder and multi asset research analyst at Adlytick.in

"Similarly, the underperformance of Nifty is anticipated to reverse, potentially leading to a significant upmove supported by heavyweight stocks."

"A buy order at this level with a stop loss at 22,450 and targets between 22,850-23,000 is suggested. For Bank Nifty, a buy in the range of 48,000-49,000 is recommended with a stop loss of 1,000 points and targets between 50,000-50,500."

The Nifty put-call-ratio is seen closer to the higher end at 1.32.

The GIFT Nifty was 34.5 points or 0.15% lower at 22,680.50 as of 6:42 a.m.

Overseas investors turned net buyers of Indian equities on Wednesday.

Foreign portfolio investors mopped up stocks worth Rs 2,778.2 crore and domestic institutional investors remained net buyers and mopped up equities worth Rs 163.4 crore, the NSE data showed.

The benchmark equity indices ended at all-time closing high on Wednesday, after extending gains in the last hour of trade.

The NSE Nifty 50 also hit an intraday high of 22,775.70 points and the S&P BSE Sensex crossed the psychologically crucial mark of 75,000.

Sectoral indices on the NSE were mostly higher at close, except Nifty Pharma and Nifty Auto, which ended lower. The Nifty Media ended nearly 2% higher. The broader markets ended higher in line with the benchmark indices.

The BSE MidCap settled 0.89% higher and the SmallCap ended 0.46% up. On the BSE, 18 sectors advanced and two declined. The Oil & Gas sector rose the most, while Utilities declined the most.

• Dr. Reddy's Laboratories Ltd.: The company launched the drug-free migraine management device Nerivio in Germany through its step-down subsidiary Betapharm.

• The Phoenix Mills Ltd.: The company reported a total consumption jump of 27% year-on-year at Rs 2,818 crore in the fourth quarter, gross retail collections went up 37% at Rs 791 crore while total consumption was up 22% YoY at Rs 11,327 crore for the end of the financial year 2024, gross retail collections up 27% at Rs 2,743 crore.

• Metropolis Healthcare Ltd.: The company's core business revenue grew 15% year-on-year for the end of the fourth quarter. The company’s B2C revenues grew by 18%. The company repaid debt, resulting in a debt-free status as of March 31.

Tata Consultancy Services Ltd. and Anand Rathi Wealth Ltd.

• Oil prices spike driven by geopolitical risk premium in the Middle East

• Price strength on strong oil demand despite weak US data last week.

• Oil demand strength observed in the US, Europe, China, India, and Brazil.

• Expects demand decelerating to 1-million-barrels-per-day pace in 2025,

• Expects Russian oil output to fall, but exports to rise.

• Expects Iraq to restart Kurdish pipeline by April, unlocking incremental production.

• Acceleration in EV sales to contribute to peaking of oil demand by decade- end.

• JM Financial initiates coverage on Bharti Hexacom with a 'buy', with a target price of Rs 790.

• Average revenue per user on a structural uptrend; the industry needs Rs 275-300 ARPU to meet future capex needs.

• FY24-30 Ebitda CAGR could be higher at 15% (vs. 12% for Bharti’s wireless business).

• Relatively lower capex - higher return on capital employed business vs Bharti.

• The company will likely to become net-cash by FY29.

Most share indices in the Asia-Pacific region were trading lower as back-to-back strong economic data from the US compelled market participants to pull back their bets on rate cuts by the Federal Reserve.

The Nikkei 225 was trading 191.50 points or 0.49% higher at 39,634.13, and the S&P ASX 200 was 28.80 points or 0.37% lower at 7,784.80 as of 06:37 a.m. The KOSPI index was trading 11.30 points or 0.42% down at 2,695.66 as of 06:37 a.m.

The benchmark indices on Wall Street rebounded on the back of technology stocks rallying. The Nasdaq 100 index ended 1.65% higher as of Thursday. The S&P 500 rose 0.74% higher, and the Dow Jones Industrial Average settled flat.

Brent crude was trading 0.40% higher at $90.14 a barrel. Gold was higher by 0.55% at $2,385.46 an ounce.

The Indian rupee closed stronger against the US dollar on Wednesday, tracking the fall in oil prices and bunched-up dollar inflows.

The local currency strengthened 13 paise to close at Rs 83.19 against the US dollar.