Stock Market Market Analysis Report - April 22, 2024

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1. Nifty Performance:

The Nifty index opened with a gap up and maintained its upward momentum throughout the day, marking its second consecutive day of gains. Closing with handsome gains, the Nifty showcased follow-through buying interest, closing above key moving averages at 22325– 22200. This level is expected to act as a support in case of a dip. The bullish sentiment is likely to continue, with an anticipated upmove towards 22255, which aligns with the 78.6% Fibonacci retracement level.

2. Bank Nifty Outlook:

The Bank Nifty displayed positive momentum and is expected to continue its upmove towards 48450– 48,500, coinciding with the gap area formed on April 15th. Crucial support is identified at 47750– 47650. The momentum setup suggests a favorable environment for bulls.

3. Market Sentiment:

Bulls maintained dominance in the market, driving the Nifty higher for the second consecutive session. The overall trend has turned positive, supported by the reclaiming of critical near-term moving averages. Sentiment remains favorable for bulls as long as the index stays above 22,150. Upside potential is seen towards 22,600-22,700, while a drop below 22,150 could lead to consolidation.

4. Market Recap:

The Sensex surged by 560.29 points (0.77%), closing at 73,648.62, while the Nifty gained 189.40 points (0.86%) to settle at 22,336.40. Majority of sectors ended the session higher, with PSU Banks and Pharma leading the gains. Midcaps performed in line with the benchmark index, while Smallcaps outperformed.

5. Technical Analysis:

The Nifty50 formed a Dragonfly DOJI candlestick pattern, indicating potential upward momentum. The index is expected to fill the bearish gap zone of 22,430-22,500, with support identified at 22,180 (50DMA).

6. Global Market Influences:

The Indian market extended its relief rally amid reduced Middle East tension, though the situation remains uncertain. Broad-based recovery across sectors was observed, with renewed interest in mid- and small caps. Gold and oil prices showed some relief but remained elevated. Hawkish remarks from the US Federal Reserve, driven by persistent inflation and robust economic data, spurred a rally in bond yields.

7. Closing Market Snapshot:

Top gainers on the Nifty included BPCL, Tata Consumer Products, Eicher Motors, L&T, and Shriram Finance, while losers were NTPC, HDFC Bank, JSW Steel, IndusInd Bank, and Tata Steel. All sectoral indices ended in the green, with notable gains in Auto, PSU Bank, Capital Goods, Oil & Gas, FMCG, Healthcare, and Realty sectors. The BSE midcap and smallcap indices gained 1 percent each.

Conclusion:

The Indian market exhibited strength with a second consecutive day of gains, fueled by positive sentiment and broad-based sectoral performance. While global uncertainties persist, the market outlook remains optimistic, supported by technical indicators and bullish momentum. Investors are advised to remain vigilant of key support and resistance levels for strategic decision-making.

This report provides a comprehensive overview of the market performance on April 22, 2024, and highlights key factors influencing market movements.