Stock market recap: Indian benchmark indices fell sharply on Thursday, 9 April, as hopes of a lasting US-Iran ceasefire began fading, weighing on investor sentiment.
Sensex ended 931 points or 1.2% lower at 76,631.65, while the Nifty 50 lost 222.25 points or 0.93% lower at 23,775. Intraday trade, the Sensex touched a low of 76,348, and the Nifty 50 slipped 314.5 points, or 1.3%, to 23,683.
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Nifty 50 performance on 9 April
On Thursday, the Nifty 50 opened lower at 23,909.05 and initially attempted a rebound, touching an intraday high of 23,990.75. However, the index failed to hold gains and faced selling pressure, slipping to an intraday low of 23,682.80. It eventually closed near the day’s low at 23,775.10, down 222.25 points (-0.93%), signalling profit booking at elevated levels. The index remains below key moving averages, reflecting a weak broader trend.
While intermittent pullbacks were seen from lower levels, overall momentum remains constrained amid persistent resistance and a lack of strong institutional buying.
From a momentum standpoint, the RSI has improved to around 51.30, showing a mild recovery from oversold conditions and early signs of stabilization. However, it remains below bullish territory, indicating limited upside conviction. The MACD, still in negative territory, is flattening, with a potential positive crossover forming, suggesting a slowdown in bearish momentum. Together, these indicators point to a transition phase: selling pressure is easing, but confirmation of a sustained uptrend will require stronger price action and follow-through.
According to O’Neil’s Market Direction framework, the Indian equity market has moved from a “Rally Attempt” to a “Confirm Uptrend.”
On the technical front, immediate resistance lies in the 24,000–24,200 range, with a more significant hurdle near the 50-DMA around 24,500. Support is seen at 23,300, coinciding with the 21-DMA, while a stronger base exists in the 22,800–22,600 zone.
The recent sharp rally, supported by easing crude prices and a stable domestic policy backdrop, has improved market sentiment. In the near term, the index is likely to consolidate above 23,300 with a gradual upward bias. A sustained breakout above 24,200 could open the door for further gains, while a breach of key support levels may reintroduce volatility.
Nifty Bank's performance
The Nifty Bank index opened lower at 55,505.95 and made a brief recovery, touching an intraday high of 55,583.10. However, selling pressure prevented sustained gains, dragging the index to an intraday low of 54,626.85. It eventually closed at 54,821.70, down 1.58%, signalling profit booking at elevated levels. The index remains below key moving averages, reflecting a weak broader trend. Despite intermittent recovery attempts, banking stocks continue to face pressure amid persistent selling and limited institutional accumulation.
From a momentum perspective, the RSI stands around 50.06, indicating a neutral stance with early signs of recovery from oversold levels. The MACD, still in negative territory, is flattening, with a potential positive crossover forming, suggesting easing bearish momentum. This points to a transitional phase: selling pressure is moderating, but confirmation of a sustained uptrend will require stronger price action, broader market breadth, and follow-through buying in heavyweight banking stocks.
Technically, immediate resistance lies in the 55,500-56,000 range, with a stronger hurdle near 57,400-57,500, close to the 50-DMA. On the downside, support is seen around 53,700–53,800 (21-DMA), while a stronger base exists near 52,500–52,000. The recent pullback followed by a sharp recovery from lower levels points to early signs of stabilization.
In the near term, the index may consolidate above 53,800 with a gradual upward bias, while a sustained move above 56,000–56,500 could trigger further gains. Conversely, a breach of key support levels may invite renewed selling pressure.
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