Market Closing Comment
Indian benchmark indices closed strongly on April 17, supported by optimism around US-Iran peace talks. Additionally, appreciation in rupee and cooling crude oil prices kept traders’ sentiment optimistic, leading to widespread buying across sectors.
At the close, the Sensex rose 504.86 points or 0.65% to close at 78,493.54, while the Nifty gained 156.80 points or 0.65% to close at 24,353.55. On the sectoral front, buying interest was seen in most sectors, and the market traded in a positive tone. Key gains were seen in Nifty FMCG, Metal and Oil & Gas indices, which advanced 1-3%, while Nifty IT remained a laggard. The broader market outperformed the benchmark indices with the Nifty Midcap rising around 1.27% and the small cap index advancing around 1.48%.
Ingenious perspective
The index formed a bullish candlestick pattern with a higher high and higher low for the second consecutive week, highlighting the continuation of the pullback, as the index in the process retraced more than 50% of its previous drop from 26,373 to 22,183. The forward bias remains positive. A follow-through strength above last week’s high of 24,400 will trigger further momentum, which could take the index towards the 24,700-24,800 range, which is the confluence of the 200-day EMA and the previous breakout zone. Short-term support is around 23,550. This region aligns with last week’s low and the 20-day exponential moving average (EMA). Staying above this support band would help sustain the current retracement trend.
Ingenious bank insights
The index on the weekly chart formed a bullish candlestick pattern characterized by a higher high and lower low, indicating a continuation of the pullback. The index in the process retreated more than 50% from its previous drop from 61,764 to 49,955. Going forward, a follow-through strength above last week’s high of 56834 will open further upside towards 58,000 levels, which are the previous gap area and a key retracement of the previous decline. From a short-term perspective, support lies in the 54,500-54,000 zone range, which coincides with the confluence of last week’s low and the 20-day EMA. Staying above this support band will keep the current retracement trend intact.
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