Nifty 50 Index soars ahead of Infosys, ICICI, HDFC, Yes Bank earnings

Indian stocks are in a strong bull run, with the blue-chip Nifty 50 Index soaring by 10% from its lowest level this year. It jumped to INR 24,233, its highest level since March 11, boosted by the falling crude oil prices and the ongoing earnings season. 

Indian stocks surge as war end hopes

The Nifty 50 Index, which tracks the biggest Indian companies, is doing well as hopes that the US-Iran war will end soon. Donald Trump and top Iranian officials are considering extensions to the truce as they look forward to negotiations.

An end to the US-Iran war would be highly bullish for Indian stocks and the rupee. That’s because the Indian economy largely depends on Middle East energy sources now that President Trump pressured Modi to end Russian imports. 

The ongoing truce, which officially ends next week, has pushed crude oil prices much lower. Data shows that Brent and the West Texas Intermediate (WTI) have dropped to $91 and $95 from Monday’s high of over $100. The decline happened even as the blockade against the Strait of Hormuz ended. 

The truce explains why the other global indices have jumped, with the S&P 500 Index soaring above the key resistance at $7,000. It has soared to a record high. Similarly, Chinese indices like the Hang Seng and Shanghai Composite soared sharply. 

The Nifty 50 Index is also rising as more Indian companies publish their financial results. Tata Consultancy published strong financial results last week as companies used its services to expand their AI solutions. 

More Indian companies will publish their results in the coming days. Infosys, a top TCS competitor valued at over $76 billion, will publish its results today, April 16. HCL Tech, HDFC Life, and Wipro will also relese their numbers today. 

Hindustan Zinc and Jio Financial Services will release their financial results on Friday, while top banks like ICICI, HDFC, and Yes Bank will release theirs on Saturday. 

Next week will also see more Indian companies release their numbers. Some of the most notable ones to watch will be Nestle, Tech Mahindra, Reliance Industries, Axis Bank, and Maruti Suzuki.

Nifty 50 Index technical analysis

Nifty 50 Index chart | Source: TradingView

The daily chart reveals that the Nifty 50 Index has done well in the past few weeks. After bottoming at INR 22,185 earlier this month, the index has now soared to INR 24,250, its highest level since March 11. It has formed two up-gaps in the past two weeks.

The index is attempting to move above the 50 exponential moving average (EMA). Also, it is attempting to cross the crucial resistance level at INR 24,343, its lowest level in August last year. 

The Nifty Index has moved above the Strong, Pivot, Reverse level of the Murrey Math Lines tool. Therefore, the most likely forecast is bullish, with the next key level to watch being the psychological level at INR 25,000. A move below the Strong, Pivot, Reverse level at INR 23,437 will invalidate the bullish outlook.