On Tuesday, Nifty 50 was volatile owing to mixed cues. Positive sentiment stemmed from strong FPI inflows and optimism over a potential US-India trade deal. IT stocks led the gains, supported by stable earnings and renewed global tech optimism.
However, pressure from metal and pharma stocks, and geopolitical tensions between India and Pakistan, offset some of the gains. Technical resistance around 24,400 also added to intraday choppiness, keeping the index range-bound despite bullish undercurrents.
Also read: TVS Motor posts 75% profit growth, but worries about capital allocation persist
Two stock recommendations by MarketSmith India for 30 April
Buy: Tube Investments of India Ltd. (current price: ₹2,797.5)
- Why it’s recommended: Strong and diversified business portfolio, focused growth strategies
- Key metrics: P/E: 43.70, 52-week high: ₹4,810.80, volume: ₹405.03 crore
- Technical analysis: Reclaimed its 50-DMA
- Risk factors: Exposure to cyclical industries, intense market competition
- Buy at: ₹2,797.5
- Target price: ₹ 3,150 in three months
- Stop loss: ₹2,680
Buy: BEML (current price: ₹ 3,211)
- Why it’s recommended: Robust order book and revenue visibility, expansion in rail and metro segments, advancements in defense and aerospace
- Key metrics: P/E: 49.44, 52-week high: ₹ 5,488, volume: ₹ 7.81 lakh
- Technical analysis: Downward sloping trendline breakout
- Risk factors: Dependence on government orders, raw material price volatility
- Buy at: ₹3,211
- Target price: ₹3,700 in three months
- Stop loss: ₹2,980
How Nifty 50 performed on 29 April
Nifty 50 saw volatile trading on Tuesday but managed to end flat, remaining above 24,300 and continuing its uptrend. Despite intraday choppiness the index held firm, reinforcing bullish undertones. A small-bodied ‘doji’ candle formed on the daily chart, reflecting market indecision amid profit booking at higher levels. Broad market indices and most sectors supported the move, though metals and pharma lagged. The advance-decline ratio flattened around 1:1.
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Technically, Nifty remains above its 200-DMA, with the RSI sustaining its upward bias and MACD staying positive, indicating continued bullish momentum. According to O’Neil’s methodology of market direction, Nifty50 transitioned from a ‘rally attempt’ to a ‘confirmed uptrend’.
Despite the volatility, market sentiment remained optimistic. Intraday pullbacks suggested supply at higher levels, warranting near-term caution. A breakout above 24,400 may push the index toward 24,700–24,900, while support remains at 24,000–23,900. A breach could trigger a short-term correction.
How did Nifty Bank perform?
On Tuesday, Nifty Bank was volatile but ended flat at 55,391, pausing in its recent upward momentum. The index traded within a narrow range throughout the day, with price action forming a small bearish candle featuring a long upper wick — a sign of selling pressure at higher levels. Sectoral components showed mixed performance, indicating ongoing consolidation within the banking space.
From a technical standpoint, Bank Nifty continues to trade above all its key moving averages, reaffirming its broader bullish structure. The RSI on the daily chart remains in the positive zone, while the MACD stays above the signal line, maintaining its bullish crossover. Despite the day’s mild weakness, the underlying trend remains intact.
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According to O’Neil’s methodology of market direction, Nifty Bank transitioned from an ‘uptrend under pressure’ to a ‘confirmed uptrend’.
Nifty Bank’s outlook remains positive above the key support of 54,500. Immediate resistance is at 56,000, and a breakout above this could drive a rally toward 57,500–58,000. On the downside, key support lies in the 54,500–54,000 range. The bullish trend is likely to continue so long as the index holds above 54,000.
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.
Trade name: William O’Neil India Pvt. Ltd.
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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.
