The Nifty 50 fell by 183.55 points, begin trading at 21,812.30, while the Sensex fell by 591.21 points, kicking off at 71,898.32.
Nine of the Nifty 50 firms saw rise, while a staggering 41 saw declines, reflecting the gloomy mood of the market.
BPCL, Bajaj Auto, Infosys, and Axis Bank were the noteworthy lossers among the Nifty 50 companies, while gainers were ONGC, Apollo Hospital, ITC, Bharti Airtel, and HDFC Bank.
According to Dr. V K Vijayakumar, Chief Investment Strategist of Geojit Financial Services, the markets have been rattled by reports of a probable rise in Iran-Israel conflict. Increased anxiety in the equity markets is reflected in the notable downturn in Asian markets and the dramatic declines in US futures. The bond markets also provide challenges.
Yesterday saw significant FII selling that reached ₹4,260 crores due to the sudden increase in US bond rates. In the near future, further FII selling is likely to occur, which will increase pressure on largecaps. Investors could hold off until the geopolitical situation becomes more clear. It is highly uncertain, said Vijayakumar.
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Share Market Tips and Nifty 50 Outlook by Rajesh Palviya, SVP – Technical and Derivatives Research, Axis Securities
With the current close, the benchmark index is approaching the lower end support zone (22,000) of the five-month “up-sloping channel,” which remains a crucial support zone to watch for. Hence, any violation of 22,000 levels on a closing basis may cause a short-term trend reversal, which may take the index towards 21,600–21,500 levels. On the flipside, 22,300–22,500 levels remain a supply zone, said Rajesh Palviya, SVP, Technical and Derivatives Research, Axis Securities.
The Nifty 50 in the current series has witnessed a short-build with a price cut of -1.80% (405 points) and an increase in open interest by approximately 20%, indicating bears have the upper hand in the market. As per options data for the monthly expiry scheduled on 25th April, significant CALL writing is seen at 22,300, 22,400, and 22,500 strikes, indicating strong resistance, while put strikes with high open interest concentration were 22,000, 21,800, and 21,500, hinting towards support, explained Palviya.
Also Read: Gold prices jump after escalation in Iran-Israel war. Should you buy in this rally?
Stock in focus today – Stock recommendation for Friday by Rajesh Palviya
Multi Commodity Exchange of India Ltd (MCX) – (CMP: ₹3,920)
With the current close, the stock has decisively broken out of its three-month “multiple resistance” zone of 3,900 levels on a closing basis, indicating positive bias. In the past couple of weeks, rising volume has indicated increased participation. Recently, the stock has recaptured its 20, 50, and 100-day SMA and rebounded sharply, indicating a strong comeback of bulls. The daily and weekly strength indicator RSI has turned bullish, showing rising strength, said Rajesh.
Investors should buy, hold, and accumulate this stock, which has an expected upside of 4,200–4,400 and a downside support zone of 3,760–3,660, advised Palviya.
MCX has seen price gains of 16% (546 points) in the current expiry and a decrease in open interest of -10%, indicating shorts are being squeezed. In the April series, there has been a high OI concentration at 4000 call strike, followed by 4,100 and 4,200, indicating a probable resistance zone, while strong support is seen at the 3,800 level as significant put writing has been seen at the same level, followed by 3,850 and 3,900, explained Rajesh.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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Published: 19 Apr 2024, 10:00 AM IST