Stock market recap: India’s benchmark indices Sensex and Nifty 50 ended with strong gains on Monday, 6 April, rising more than 1% each amid easing crude oil prices and further recovery in the Indian rupee.
Extending gains to the third consecutive session, the Sensex ended 787 points, or 1.07%, higher at 74,106.85, while the Nifty 50 settled at 22,968.25, rising 255 points, or 1.12%. The BSE 150 Midcap index gained 1.30%, while the BSE 250 Smallcap index rose by 1.10%.
Investor wealth rose by more than ₹5 trillion in a single session as the overall market capitalization of BSE-listed firms rose to over ₹427 trillion.
Buy: Titan Co. Ltd (current price: ₹4,246)
Buy: Schneider Electric Infrastructure Ltd (current price: ₹926)
Nifty 50 performance on 6 April
The Nifty 50 opened on a positive note and sustained buying momentum throughout the session. After testing an intraday low of 22,542.95, the index rebounded sharply, reflecting value buying on declines. It touched a high of 22,998.35 and closed near the day’s top at 22,968.25, up 255.15 points (+1.12%). Despite the recovery, the index remains below its key moving averages, including the 50- and 100-DMA, signalling underlying structural weakness.
Price action points to early signs of stabilization, but a sustained uptrend will require follow-through buying across broader market segments.
From a technical perspective, the RSI has bounced to 41.26 from oversold territory, showing improving short-term momentum, though it remains below the neutral 50 mark. The MACD continues in negative territory, with the signal line below zero, but a narrowing histogram hints at a potential bullish crossover. This suggests a possible shift from bearish to neutral bias, though confirmation of strength is still awaited.
According to O’Neil’s market direction framework, the Indian equity market has moved from a “Rally Attempt” to a “Downtrend.” Key support lies in the 22,500–22,400 zone, corresponding to recent swing lows and serving as a demand area during the rebound.
Immediate resistance is seen near 23,400 (21-DMA), followed by 24,600 (50-DMA), a crucial level for trend reversal. A decisive break above these hurdles could trigger short covering and fresh buying interest, while a breach below 22,400 may resume the broader downtrend.
With easing geopolitical tensions and improving global cues, the index could attempt a relief rally. Sustained upside, however, will hinge on institutional flows and global macro stability.
Nifty Bank's performance
Nifty Bank also opened on a positive note and maintained buying momentum throughout the session. After testing an intraday low of 51,111.10, the index rebounded sharply, reflecting value buying on dips. It rallied to a high of 52,704.55 and closed near the day’s top at 52,609.10, up 1,060.35 points (+2.06%). Despite the strong rebound, the index remains below key moving averages, including the 50- and 100-DMA, suggesting the broader trend is still under pressure. Price action indicates early signs of a relief rally, supported by improving sentiment in financial stocks.
Technically, the RSI recovered to 40.47 from oversold territory, signaling short-term momentum improvement, though it remains below the neutral 50 mark. The MACD continues in negative territory, with the signal line below zero, but a narrowing histogram points to weakening bearish momentum and a potential bullish crossover. This setup suggests a possible shift toward consolidation or early recovery. Sustained improvement in momentum indicators will be needed to confirm a durable trend reversal in the coming sessions.
Key support for Nifty Bank lies at 51,000–50,800, aligning with recent swing lows and acting as a demand zone. Immediate resistance is at 54,300 (21-DMA), followed by 57,700 (50-DMA), a crucial level for a trend reversal. A decisive break above these levels could trigger short covering and fresh buying, while a breach below 50,800 may resume the broader downtrend.
With improving banking sentiment and easing global concerns, the index may attempt a near-term relief rally, but sustained upside will depend on institutional flows and macro stability.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.
Trade name: William O’Neil India Pvt. Ltd.
Sebi Registration No.: INH000015543
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.