Trade Setup: Market Likely To Hit Record High For The 2nd Consecutive Session; Nifty Seen At 22,750

Monday saw the Indian markets embarking on a record-setting spree as the Nifty, Nifty Bank, and Midcap index surged to new highs, marking an optimistic start to the truncated trading week. However, the buoyancy witnessed by the Nifty was not echoed across all indices as the broader markets struggled to sustain their gains amidst mixed cues.

The Nifty, hovering around the 22,700 mark, encountered resistance as expected, with Call writing predominantly visible for this week's expiry, particularly at the 22,800 level. Despite this, market leader Reliance Industries spearheaded the Nifty's upward trajectory, accounting for a 25% surge and propelling the index to a record high. Joining the rally were names like L&T and Mahindra & Mahindra, further bolstering the index's gains.

In contrast, the broader market indices faced hurdles in maintaining their elevated positions. The Nifty Midcap index witnessed a significant retreat of over 300 points from its peak, while the Smallcap index is yet to challenge its previous highs, indicating a mixed sentiment prevailing among investors.

Foreign institutions adopted a selling stance in the cash market on Monday, while domestic institutions emerged as aggressive buyers, influencing market dynamics.

Similarly, the Nifty Bank charted a record high trajectory during Monday's session, propelled by the recent rally since the March 20 lows, primarily fueled by HDFC Bank's remarkable 7% surge last week, marking its best performance since 2022.

In the Futures and Options (F&O) segment, the April futures of Nifty 50 witnessed an 8.1% surge in Open Interest, with a notable addition of 7.8 lakh shares on Monday. Conversely, the Nifty Bank's April futures observed a 4% decline, shedding 83,225 shares in Open Interest. The Put-Call Ratio for Nifty 50 surged to 1.29 from 1.03, indicating a cautious optimism prevailing in the market.

Amongst the stocks in the F&O ban list, Hindustan Copper exited the ban list, while Bandhan Bank, SAIL, and Zee Entertainment continued to remain in the ban.

In anticipation of Wednesday's weekly options expiry, the Call side of Nifty 50 witnessed varied activity. The 22,500 Call strike observed a decline in Open Interest, while the 22,700 and 22,750 strikes witnessed significant additions.

Conversely, on the Put side, Open Interest additions were noted for Nifty 50 strikes between 22,500 and 22,700 for the upcoming weekly expiry on Wednesday.

As investors brace themselves for Tuesday's trading session, a myriad of stock movements and corporate announcements are set to influence market sentiments. Here's a comprehensive look at the key developments and stocks likely to command attention:

Axis Bank: Bain Capital's proposed sale of up to 3.34 crore shares via block deals, valued at $431 million, is poised to make waves. With an offer price ranging between Rs 1,071 and Rs 1,076.5 per share, investors are keenly eyeing this development, especially as the lower band of the offer price presents a slight discount of 0.5% to Monday's closing price.

Gland Pharma: Nicomac Machinery & RP Advisory Services' anticipated sale of up to 4.4% equity, at a floor price of Rs 1,725 per share, is generating considerable interest. With the offer size estimated at Rs 1,400 crore, the floor price's 7.3% discount to Monday's close adds intrigue to this potential transaction.

Shilpa Medicare: The launch of a Qualified Institutional Placement (QIP) to raise funds, with a floor price set at Rs 477.33 per share, underscores the company's strategic financial manoeuvring. Investors await further details regarding the size and response to this offering.

Aurionpro Solutions: The Board's approval for issuing and allotting 18.88 lakh shares to eligible institutional buyers at Rs 2,000 per share, marking a 4.93% discount to the QIP floor price, piques investor interest. Notable buyers like Goldman Sachs and Malabar India Fund further add to the intrigue surrounding this development.

UCO Bank: Reporting a substantial increase in total business, advances, and deposits compared to the previous year, UCO Bank's robust performance is likely to garner attention. Notably, the improvement in the CASA Ratio to 71.2% reflects a strengthening deposit base for the bank.

Jindal Stainless: The subsidiary's launch of a premium cookware range under the Arttd'inox lifestyle brand marks a strategic diversification effort. With three distinct collections, this move aims to leverage the brand's reputation in the premium segment.

Tata Motors: JLR's full-year sales growth of over 20% year-on-year, along with a 25% increase in wholesales for the Financial Year 2024, underscores the automotive giant's resilience and market performance.

General Insurance Industry: An uptick in March premiums, especially for ICICI Lombard, reflects growing consumer demand for insurance products. The industry's resilience amidst challenging economic conditions is evident from the steady growth in premium figures.

Sula Vineyards: Reporting a 10% increase in net revenue for the March quarter, Sula Vineyards' robust performance underscores the resilience of the wine industry despite prevailing challenges.

Dilip Buildcon: Emerging as the L-1 bidder for a significant project by the Haryana Rail Infra Development Corporation, Dilip Buildcon's strategic wins reinforce its position as a leading player in the infrastructure segment.

Gujarat Pipavav Port: The decline in container cargo volume year-on-year signals potential challenges for the port operator, underscoring the need for strategic initiatives to revitalize growth in cargo handling.

Ami Organics: The upcoming board meeting to consider fundraising options, including bonds, debentures, and equity, highlights the company's proactive approach towards capital augmentation and expansion plans.

Anand Rathi Wealth: The board's deliberation on a potential buyback of equity shares to enhance shareholder value and capital efficiency of the company.

As investors globally brace for forthcoming inflation data, Monday saw US stock futures maintaining a cautious stance, while European markets closed higher amidst anticipation for key data releases and central bank decisions. Meanwhile, Asia-Pacific markets surged, driven by expectations surrounding business and consumer confidence data.

US stock futures exhibited limited movement on Monday, reflecting investors' cautious sentiment ahead of crucial inflation data. Futures tied to the S&P 500 hovered near the flatline, while Nasdaq 100 futures edged slightly higher by 0.1%. Dow Jones Industrial Average futures gained a marginal 16 points, signalling a subdued opening for Wall Street.

In Monday's trading session, US stocks closed near the flatline, with the S&P 500 recording a marginal decline of 0.04% and the Dow Jones Industrial Average slipping by 0.03%. The Nasdaq Composite managed to eke out a modest gain of 0.03%.

US Treasury yields witnessed an uptick on Monday as investors processed Friday's jobs report and awaited crucial data releases slated for the week, which could offer insights into the trajectory of interest rates. The yield on the 10-year Treasury rose by 4 basis points to 4.42%, hovering around its highest level for the year. Meanwhile, the 2-year Treasury yield increased by 6 basis points to 4.793%.

European markets closed higher on Monday, kicking off a week packed with significant data releases and central bank decisions. The regional Stoxx 600 index ended the day with a gain of 0.5%, with mining stocks leading the uptrend with a 2% surge, while media stocks experienced a slight dip of 0.2%. Last week, the benchmark index witnessed a decline of 1.2%, marking its worst performance since January after a series of consistent gains.

Asia-Pacific markets experienced a positive start to Tuesday's session, fueled by anticipation surrounding business and consumer confidence data, as well as US inflation figures, which could influence the Federal Reserve's rate cut trajectory.

Japan's Nikkei 225 climbed by 0.59%, while the broader Topix index advanced by 0.37%. South Korea's Kospi index extended gains from Monday, rising by 0.17%, while the Kosdaq index hovered close to the flatline.

Hong Kong's Hang Seng index surged by 1.1%, whereas the mainland Chinese CSI300 index saw a more modest rise of 0.16%. Australia's S&P/ASX 200 rebounded from Monday's losses, recording a gain of 0.46%.

In the Indian market, GIFT Nifty trading indicated a premium of 85 points from Nifty Futures' Monday close, suggesting a positive start for the trading session ahead. Investors are closely monitoring global cues, particularly inflation data, which could influence market sentiment and trading patterns in the coming days.