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Market Closing Commentary

Indian equity indices ended marginally higher in a volatile session on April 2, with Nifty sustaining above 22,700. The index opened gap down after Donald Trump signaled potential strikes on electricity infrastructure if no agreement is reached. This pushed crude above $106 per barrel, triggering weakness across Asian markets at the open. However, sentiment improved during the session, with Nifty rebounding more than 500 points from intraday lows to close near the day high.

At close, the Sensex advanced 185.23 points or 0.25% to 73,319.55, while the Nifty gained 33.70 points or 0.15% to settle at 22,713.10. Broader markets lagged, with the Nifty Midcap index declining 0.3% and the Smallcap index falling 0.4%. Sectorally, IT led gains with a 2.6% rise, followed by realty up 1%, while auto, PSU banks, oil & gas, pharma, and consumer durables indices declined approximately 1% each.

Nifty Outlook                            

 The index formed a counterattack bullish candle signaling strong pullback after gap down opening. Buying demand emerged from the extreme oversold territory as the index recovered more than 500 days points from the day low to close above the 22,700 levels. Volatility is likely to remain elevated in the near term, amid rising geopolitical tensions and higher crude oil prices, which continue to weigh on overall market sentiment.

Nifty after recent sharp decline index has approached extreme oversold territory in the short-term chart so pullback cannot be ruled out. A move above last week high (22941) will open further upside towards 23,450 levels. Failure to move above last week high will signal some consolidation in the range of 22,200-22,900 levels

However, for any meaningful pause in the current downtrend, the index needs to start forming higher highs and higher lows on the daily chart on a sustained basis along with a close above the recent high of 23,465. Key short-term support is placed in the 22,100–21,800 zone being the trendline support joining last 2-year lows and the 200 weeks EMA.

Bank Nifty Outlook

Bank Nifty formed a bullish candlestick pattern as buying demand emerged from the key psychological level of 50,000 after a gap down opening. Volatility is likely to remain elevated in the near term, amid rising geopolitical tensions and higher crude oil prices, which continue to weigh on overall market sentiment.

Bank Nifty after recent sharp decline has approached extreme oversold territory in the short-term chart so pullback cannot be ruled out. A move above last week high (52025) will open further upside towards 53,500 levels. However, for any meaningful pause in the ongoing downtrend, the index needs to establish a sustained pattern of higher highs and higher lows in the daily chart, along with a close above recent high of 54,150. On the downside weakness below the psychological 50,000 levels will signal extension of the decline towards 49,200-49,000 levels in the coming sessions.

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