Global markets, US yield, Q4 results to set Sensex, Nifty trend on April 26

Stock market preview Friday, April 26: Global cues mixed, but sharp rise in 10-yr US bond yield to 4.73 per cent may weigh on the trading sentiment. Individual stocks to remain in focus on Q4 results.

Pre-market commentary for April 26, Friday: Indian stock market may take a breather following the 5-day rally, wherein the S&P BSE Sensex rallied nearly 1,900 points, as global mood turns cautious on the back of sharp spike in the US bond yield. 

On Thursday, the Sensex and Nifty staged a smart recovery and ended with gains of 0.7 per cent each led by a rally in bank stocks and short-covering on account of the Nifty F&O monthly expiry. 

At 07:00 AM; Gift Nifty futures quoted around 22,657 as against the spot Nifty close of 22,570, and May futures close of 22,653 yesterday. 

Technical outlook on the Nifty & Bank Nifty

Rajesh Bhosale, technical analyst at Angel One recommends traders should maintain a positive outlook and capitalize on buying opportunities during market dips. 

Rajesh expects the former resistance levels around 22,500 – 22,450 to act as immediate supports, with 22,300 identified as a pivotal support level. 

On the other hand, Nifty appears poised to approach the previous high at 22,775, with 22,700 potentially acting as immediate resistance, the Angel One analyst said in a note.

Neeraj Sharma, AVP technical and derivatives research at Asit C Mehta Investment Interrmediates recommends that the Bank Nifty is on the verge of sustaining the 48,500 levels. If the Bank Nifty closes above 48,500, then the rally could extend to 49,000-49,500 levels. 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, Neeraj expects short-term support at 22,500 and 22,300, with resistance around 22,780 and 23,000. 

Key factors that will guide the trading mood on Friday:

Global cues: Overnight the US stocks crumbled under selling pressure as disappointing forecasts from Facebook and Instagram owner Meta hammered the tech sector, and Japan's yen sank through 155 per dollar for the first time since 1990.

That apart, tepid US GDP data coupled with persistent inflation saw US Treasury yields rise to fresh 5-month highs, at 4.73 per cent, lowering hopes that the Federal Reserve will cut interest rates anytime soon.

Eventually, Dow Jones slumped 1 per cent, Nasdaq 0.6 per cent and the S&P 500 0.5 per cent on Thursday. On Friday, traders will focus on the Personal Consumption expenditures (PCE) index, the Fed's preferred inflation gauge. Nasdaq futures, however, rose 1 per cent in post market trade driven by an earnings boost by Google parent firm, Alphabet.

Meanwhile, in commodities, Gold prices edged higher to $2,340 per ounce, and Brent Crude Oil futures climbed atop $89 per barrel.

In Asia this morning; Taiwan surged 1.5 per cent, Kospi advanced 0.8 per cent, while Nikkei traded on a flat note.

Fund flows

The foreign institutional investors (FIIs) have been aggressive sellers in the month of April so far. FIIs have net sold stocks to the tune of Rs 33,524 crore. 

On the other hand, domestic institutional investors (DIIs) have overpowered this selling with net purchase of shares worth Rs 37,708 crore.
 

Stocks in focus

Maruti Suzuki stock recently topped the Rs 13,000-mark for the first-ever time. The company is scheduled to announce Q4 results today. Analysts expect Maruti Suzuki, India's biggest domestic car manufacturer, to deliver over 40 per cent year-on-year (YoY) growth in net profit riding on better pricing and healthy sales volume in the March 2024 quarter. READ PREVIEW

HCL Technologies the last of the major IT firms in India will also report earnings on Friday. Here's what brokerages expect from IT major. READ PREVIEW

Bajaj Finance stock to react to Q4 results today. The NBFC reported 21.1 per cent YoY growth in consolidated net profit at Rs 3,824.53 crore for Q4FY24 when compared with Rs 3,157.79 crore in Q4FY23. Revenue from operations rose 31.3 per cent to Rs 14,926.21 crore from Rs 11,364.01 crore.

Earnings calendar for April 26: 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 are among the prominent companies scheduled to announce Q4 results on Friday.

Shares of IndiGo too are expected to garner investor interest after the airline placed an order with European plane maker Airbus for 30 A350-900 widebody aircraft at a deal estimated to be between $4 billion and $5 billion.