Dalal Street Corner: BSE-listed companies’ m-cap swells over 4.5 lk cr as market ends at 3-month highs; what should investors do on Tuesday?

Indian market on Monday closed at a nearly three-month high levels, led by banking and financial stocks. Amid massive buying, Sensex rose 1,335 points and Nifty50 closed above the 18,000-mark. While the broader markets – mid and small-cap indices – surged over 1.6 per cent each at the close. 

The BSE listed companies’ market capitalization grew more than 4.5 lakh crore to Rs 2,72,41,001.68 crore on Monday as compared to Rs 2,67,88,386.93 crore registered on April 1, 2022. 

See Zee Business Live TV Streaming Below:

The 12-share banking index – Nifty Bank gained 4 per cent at the close with HDFC Bank being the biggest contributor. The merger proposal of HDFC and HDFC Bank aided stocks to post healthy gains, while other HDFC Group stocks like HDFC Life and HDFC AMC soared in the trade as well. 

At least 47 of 50 Nifty stocks reported growth, HDFC, HDFC Bank, and Adani Ports were top gainers. On the contrary, Infosys, Titan & Tata Consumer closed negative. 

More than 70 per cent of contribution to the gain of Nifty50 because of HDFC twins also led to short covering in the market, the market analyst Parth Nyati said. He added, the global cues are stable and FIIs are showing buying interest that is leading to outperformance in the Indian equity market. 

IndiaMart, Chambal Fertiliser, Metropolis Healthcare, GSPL, Dr Lal Path Labs were top Midcap gainers, while M&M Finance and IDFC First Bank shares rose after strong Q4 business updates. 

Amongst the sectors, all the indices ended in green wherein banking, power, and metal were the top gainers during Monday’s session. 

We have collated views from different experts as to what investors should do when trading resumes: 

Expert: Parth Nyati, Founder, Tradingo 

Technically, the Nifty has strong bullish momentum however it is trading near in a down sloping trendline resistance placed around the 17125 level; above this, there is a high probability of new highs in the market this month itself. On the downside, 17800 will act as immediate support while 17500-17400 has become a strong base.   

Bank Nifty is outperforming and it has a strong structure where 39200-39500 will be the next resistance area. On the downside, 38000 is an immediate support level while 37200-36800 has become a strong demand zone. 

Expert: Rupak De, Senior Technical Analyst at LKP Securities.  

The Nifty index has moved up above 18000 smartly following a sustained trade above the previous consolidation on the daily chart. Besides, the price has moved above 200 DEMA on the daily timeframe.  

The near-term trend looks positive from here. On the higher end, the index may move towards the falling trend line on the daily chart. The immediate resistance is visible near 18150. On the lower end, support is visible at 17800. 

Expert: Ajit Mishra, VP - Research, Religare Broking Ltd 

The surprise news of the HDFC Bank-HDFC merger has boosted the sentiment amid mixed global cues and we may see the rub-off in the following session as well. The recent buoyancy in the banking pack is further adding to the confirmation.  

On the index front, a decisive close above 18,150 in Nifty would further fuel the rally towards 18,350. In case of any dip, the 17,800 zones would now act as support. Participants should align their positions accordingly and focus more on stock selection.