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Indian equity markets remained under pressure on 23 April, as rising crude oil prices, continued foreign fund outflows and weak Asian cues weighed on investor sentiment.
The Sensex fell 852 points to 77,664, while the Nifty slipped 205 points to close at 24,173. Market breadth stayed negative, with most sectoral indices ending in the red.
Despite intermittent rebounds, the broader trend remains fragile. Analysts say the market is attempting to stabilize, but the recovery lacks strong follow-through buying. In this cautious environment, stock-specific opportunities are likely to remain in focus.
Three stocks to trade, recommended by Raja Venkatraman:
PRAJIND: Buy above ₹415, stop ₹390 target ₹461 (Multiday)
MANKIND:Buy above ₹2305, stop ₹2240 target ₹2455 (Multiday)
CAMS: Buy above ₹771, stop ₹730 target ₹850 (Multiday)
Auto stocks led the decline, dropping 1.3 percent, while financial heavyweights also weighed on the indices, with ICICI Bank down 1.6 percent and HDFC Bank slipping 0.8 percent. In contrast, pharma stocks provided some relief, rallying 2.3 percent on growth expectations.
Brokerage Nomura highlighted that the domestic pharmaceutical market expanded 10.1 percent year-on-year in March, with most companies under its coverage reporting stronger-than-expected growth. Midcap and smallcap indices traded flat, reflecting cautious investor sentiment.
Nifty has been weaker in comparison and the sustained bearish pressure seen on every rally indicating that it is inclined for some downward bias as the trends are unable to head higher. While sector rotation is happening, we are reaching a point where the indices have become divergent.
HDFC Bank has been under great deal of stress ahead post its Q4 numbers. The stock could not impact the market condition much however the trends were expected to head into the upper end of the value resistance zone as the indicators were tiring out. The fall witnessed in Bank Nifty is seen struggling as the attempt to hold on is seen fizzling out as bearish pressure is emerging at higher levels. Currently , due to lack of triggers we are witnessing a ranging action that could keep the trends from recovering swiftly.
A look at Bank Nifty indicates that until 55500 is given away the bulls will attempt to rebound. Bank Nifty is a sector that should be tracked. Once 55500 is exceeded we could look at stock specific action where there are divergent views been displayed across all the component stocks. PSU Banks are performing better and the erratic vibes from Private Sector being exhibited is making it difficult for the Bank Nifty to recover. This in turn will spill over to the other sectors like Auto, Realty and Finance. Despite markets on Monday showing some prowess of a recovery the inability of Bank Nifty to clear the 58000 mark seems limited in this week. Till then this index holds the key for some trends to emerge .
Meanwhile the current scenario has . Now, we need to see Nifty move above 24500 which is the immediate resistance for some bullish revival as well as the max pain point that will continue to halt any progress. With the Open Interest data clearly indicating a hurdle at higher levels one should keep tracking a 30-minute range breakout on Friday and above this level for creating some long.
As indices are not showing much declines one should look to participate in some stock specific action.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
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.
Raja Venkatraman is the co-founder of NeoTrader, where he heads the training division. He conducts both offline and live market workshops, seminars, and webinars. He has been working under the guidance of Dr C K Narayan, his mentor and founder of Growth Avenues, for more than 20 years. He is an active trader in multiple asset classes, and actively shares his views on YouTube, blogs at NeoTrader, and on reputed news channels and websites. His Sebi-registered research analyst registration no. is INH000016223.