In a tumultuous trading session, Indian equity indices failed to sustain their early gains and closed lower for the fourth consecutive session on April 18, with the Nifty slipping below the crucial 22,000 mark. The Sensex concluded the day down by 454 points at 72488, while the Nifty fell by 152 points percent to 21995. The session began positively, buoyed by a global relief rally and short-covering activities, pushing the benchmark above 22300. However, this upward momentum was short-lived as intense selling pressure took hold during the latter half of the session, dragging the Nifty below 22000.The week proved to be disheartening for bullish investors, witnessing a drop of over 500 points in the benchmark index, bringing it below the 22000 mark. From a technical perspective, the index dipped below its 50-day Exponential Moving Average (DEMA) with a significant bearish candle formation, indicating underlying market weakness. The immediate support level is anticipated around 21800, with a potential test of the 100-day DEMA at 21600 if bullish momentum fails to materialize.On the upside, resistance levels are expected at 22150, followed by the 20-day DEMA around the 22,300 zone. Overall market sentiment favors the bears, and any rallies should be viewed as opportunities to either exit long positions or consider bearish positions.While global market developments may offer some respite, caution is advised amid ongoing uncertainty. It's prudent to refrain from aggressive trading until market conditions stabilize.On the technical front, despite the Nifty remaining below the critical 21-day Exponential Moving Average (EMA), a bullish harami pattern has formed on the hourly chart, suggesting a potential bullish reversal in the near term. Moreover, bullish divergence is evident on the hourly chart, indicating possible upward movement towards 22,200/22,300. Sustained trading above 22,300 could further strengthen the market, with support situated at 21,900.The market sentiment was mixed, influenced by escalating geopolitical tensions in the Middle East and
diminishing hopes of US interest rate cuts. Investors are adjusting to the prospect of sustained higher US interest rates amid strong labor market conditions and progress in inflation. Profit booking, particularly in heavyweight sectors like banking and FMCG, contributed to broader market losses. Investors are keenly awaiting Q4 earnings results for further market direction.The Bank Nifty also witnessed a sharp decline, testing key Fibonacci retracement levels, with potential support expected around the 47,000 zone. However, any upward movements are met with aggressive selling, indicating a prevailing "sell on rise" sentiment. Major resistance is seen at 48,000, with strong selling pressure observed at this level. Continued selling pressure could see the index testing the next major support level at 46,500, where the 100-day EMA is located.In summary, the Indian equity market witnessed frenzied selling, leading to a lower close on April 18. The Nifty ended below the 22,000 mark, with the Sensex also posting significant losses. Sectoral indices mostly traded in the red, with telecom and media being the exceptions. Mid and small-cap stocks outperformed the Nifty50, mitigating some of the broader market losses. Overall, the market outlook remains uncertain, with investors closely monitoring global developments and earnings reports for guidance.
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