Markets Wrap Up the Week on a Strong Note; Nifty Closes Above 22,800

Indian equity markets ended the week on a bullish note, with benchmark indices surging nearly 2% on April 11, buoyed by positive global cues and easing concerns over a global slowdown.

At the close, the Sensex jumped 1,310.11 points, or 1.77%, to 75,157.26, while the Nifty surged 429.40 points, or 1.92%, to 22,828.55.

Key Drivers:

• Global Sentiment Boost: The U.S. government’s decision to defer import tariffs for 90 days—excluding China—helped ease recession fears and lifted investor sentiment.

• Stronger Rupee: The Indian rupee appreciated after three consecutive sessions of decline, supported by stronger regional currencies and improved risk appetite.

Market Action:

The Nifty opened with a gap-up, briefly testing resistance near the 20-day exponential moving average (DEMA) at 22,900. It then traded in a narrow range before closing just below the resistance level. Despite the gains, the index closed off the day’s high, indicating some resistance around key technical levels.

Sectoral Performance:

All sectoral indices ended in the green:

• Metals led the rally, with the Metal index climbing 4%.

• Auto, Oil & Gas, Power, PSU, Telecom, and Pharma sectors each rose about 2%.

• The BSE Midcap index advanced 1.8%, while the Smallcap index jumped 3%, signaling broad-based participation.

Top Nifty Gainers:

• Hindalco Industries

• Tata Steel

• JSW Steel

• Coal India

• Jio Financial

Top Nifty Losers:

• TCS

• Asian Paints

• Apollo Hospitals

Technical Outlook:

• The Nifty is facing resistance near the 21-day EMA on the daily chart.

• A decisive close above 23,000 could trigger a rally towards 23,500, supported by a positive divergence in the Relative Strength Index (RSI).

• On the downside, support lies at 22,750; a breach below this level could intensify selling pressure.

• Until further clarity emerges, a hedged trading approach is recommended.

Currency Market:

The USD/INR pair saw a decline, reflecting risk-on sentiment. The pair now has:

• Support at 85.40

• Resistance at 86.90

The pause in the US’s reciprocal tariffs and early signs of easing inflation domestically are encouraging for investors. However, the tit-for-tat tariff response from China, including a 125% duty on US goods, could reintroduce volatility in the coming sessions.

Outlook:

Despite a strong finish this week, markets may remain choppy in the near term, with global developments and corporate earnings acting as key drivers. Traders are advised to maintain a balanced portfolio and keep an eye on key resistance levels and support zones for directional cues.