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Stock market recap: The Indian equity benchmark indices witnessed a volatile session today, with Nifty 50 ending lower at 24,173.05, shedding 205 points (-0.84%), while Sensex dropped approximately 0.70% to close near 78,000.
The market sentiment was largely dampened by escalating geopolitical tensions in the Middle East and Brent crude prices surging above $100 per barrel, heightening inflation fears for the import-dependent economy. Sectorally, Nifty Pharma (+2.36%) and Healthcare (+2.11%) were the standout outperformers, providing a defensive cushion amid the broader sell-off.
Conversely, Nifty Auto (-2.35%) and PSU Bank (-2.19%) faced significant selling pressure, reflecting caution over rising input costs and credit growth. The advance-decline ratio remained weak with 1,255 stocks advancing and 2,037 stocks declining, indicating broad-based distribution. Investors remain cautious as the market enters a crucial earnings phase, with the India VIX hovering near 18.30, signalling elevated near-term volatility.
Two stock recommendations by MarketSmith India:
Buy: Sai Life Sciences Ltd (current price: ₹1,040)
Buy: Garware Hi-Tech Films Ltd (current price: ₹4,195)
Indian equities ended lower on 23 April, with benchmark indices extending losses amid broad-based selling pressure. Nifty 50 closed at 24,173, down 205 points (-0.84%), hovering near the day’s low, and indicating sustained intraday weakness.
The Sensex also mirrored this negative trend. Market breadth remained firmly negative, with 1,255 stocks advancing and 2,037 stocks declining, underscoring a risk-off sentiment across the broader market. Sectorally, defensives provided some cushion, as Pharma (+2.36%) and Healthcare (+2.11%) outperformed, alongside modest gains in Media. However, cyclicals and rate-sensitive pockets led the decline, with Auto (-2.35%), PSU Banks (-2.19%), Consumer Durables (-1.97%), and Realty (-1.83%) among the key laggards. Financials and IT also closed in the red. The divergence highlights a rotation towards defensives amid uncertain cues.
The index continues to exhibit a cautious undertone following its recent up-move, with price action indicating a loss of momentum after the index approached the 24,600. Post this level, the market has witnessed consistent profit booking, reflected in a sequence of lower highs on the daily chart. Notably, the index has now breached its 50-DMA, signaling a near-term weakening of trend structure and a shift towards a more corrective phase.
From a momentum perspective, the RSI has cooled off from higher levels and is currently hovering in the low-50 zone, indicating fading bullish strength while remaining in neutral territory. Meanwhile, the MACD remains in positive territory but is showing signs of convergence, with the histogram flattening, suggesting that bullish momentum is waning.
According to O’Neil’s methodology of market direction, the Indian equity market transitioned to a “Confirm Uptrend” from a “Rally Attempt".
The index continues to encounter stiff resistance around 24,600, reinforcing this zone as a near-term supply area, while the recent breach of the 50-DMA signals a deterioration in short-term trend strength. On the downside, 24,000–23,950 is likely to provide immediate support and act as a crucial near-term cushion.
A sustained move below this band could trigger further downside, potentially dragging the index toward 23,500, which previously acted as a strong base during the last corrective phase. On the upside, any recovery is expected to face resistance in 24,700–24,800, with a more significant hurdle placed around 25,000, aligning with the confluence of the 100-EMAs.
Nifty Bank performance
Nifty Bank had a negative session, opening at 56,608.95 and facing immediate selling pressure near the upper band. The index attempted an intraday recovery, reaching a high of 56,868.70, but profit-taking emerged at higher levels. This led to a decline toward an intraday low of 56,217.15, before settling at 56,305.00, down 1.43% for the day. The price action reflects rejection near the short-term supply zone, with aggressive sellers defending higher levels.
Despite the recent rebound from lower levels, the inability to sustain above resistance indicates lingering distribution pressure. The candle structure suggests indecision with a bearish bias, highlighting cautious sentiment among participants.
From a technical indicator perspective, the RSI is at 53.40, hovering in the neutral zone, indicating neither overbought nor oversold conditions but showing a mild upward bias after recovering from lower levels. The MACD remains in positive territory, with the histogram expanding and a bullish crossover intact, signaling improving momentum.
However, the price trading below key medium-term moving averages tempers this optimism. The divergence between improving momentum indicators and weak price positioning suggests a transitional phase, where confirmation is still required for a sustained trend reversal.
Key resistance is placed in 56,900–57,300, aligning with the 50- and 200-DMA cluster, which is acting as a strong overhead supply region. Immediate support lies around 55,800–55,500, followed by a stronger base near 54,300 (21-DMA). A sustained move above 57,300 could trigger short-covering and extend the rally toward more than 58,000, while failure to hold 55,500 may invite renewed selling pressure. Given the broader corrective structure and macro uncertainty, the index is likely to remain range-bound with a negative bias unless decisive strength emerges above key resistance levels.
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