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Market Closing Commentary

Indian benchmark indices snapped their three-day gaining streak and ended lower, with the Nifty slipping below the 24,400 mark on 22nd April. The decline was driven by uncertainty surrounding geopolitical developments which lead to a rise in crude oil prices. Depreciation in the rupee further added to the negative sentiment. Additionally, the ongoing earnings season is expected to keep volatility elevated in the near term. At close, the Sensex fell by 756.84 points (0.95%) to settle at 78,516.49, while the Nifty declined 198.50 points (0.81%) to close at 24,378.10.

On the sectoral front, weakness was led by Nifty IT which was down by 3.9%. Private Banks, Financial Services, and Auto also closed in negative territory, while selective strength was seen in Nifty Chemicals, Realty, and Oil & Gas. The broader market, however, outperformed the benchmarks, with the Nifty Midcap index rising 0.19% and the Nifty Smallcap index gaining 1.13%, indicating continued stock-specific buying interest.

Nifty Outlook                            

 The index formed a bearish candlestick pattern which remained contained inside previous session price range signaling consolidation amid profit booking after recent strong up move. Overall bias continues to remain positive above last Wednesday gap up area of 23,850-24,100. Index is expected to maintain positive bias and gradually head towards 24,700-24,800 levels being the confluence of the 200 days EMA and the 61.8% retracement of the entire decline 26,373 to 22,183. Volatility is expected to remain high on account of the geopolitical tension and volatile crude oil prices. Short-term support is positioned around 23,600–23,500 range being the confluence of last week low and 38.2% retracement of the last 3 weeks pullback (22,183-24,601). Forming higher high and higher low in weekly chart will keep the current pullback trend intact.

Bank Nifty Outlook

The index formed a high wave candle which remained contained inside previous session price range signaling consolidation after recent strong up move. Overall bias remain positive above last Wednesday gap up area of 55,600-55,850. Index is expected to maintain positive bias and gradually head towards 57,800 and 58,500 levels being the previous breakdown area and key retracement of previous decline. Volatility is likely to remain high on account of the geopolitical tension and volatile crude oil prices. From a short-term perspective, support is placed in the range of 54,500–54,000 zone, being the confluence of the last week low and 38.2% retracement of the last 3 weeks pullback (49,955-57,456). Forming higher high and higher low in weekly chart will keep the current pullback trend intact.  

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