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Market Closing Commentary

 Indian benchmark indices closed on a strong note on 17th April, supported by optimism surrounding U.S.–Iran peace talks. Additionally, appreciation in the rupee and a cooling in crude oil prices kept trader sentiment upbeat, leading to broad-based buying across sectors.

At close, the Sensex surged by 504.86 points or 0.65% to settle at 78,493.54, while the Nifty gained 156.80 points or 0.65% to close at 24,353.55. On the sectoral front, buying interest was seen across most sectors, with the market trading on a positive undertone. The key gains were witnessed in Nifty FMCG, Metal, and Oil & Gas indices, which advanced in the range of 1% to 3%, while Nifty IT remained a laggard. The broader market outperformed the benchmark indices, with the Nifty Midcap rising around 1.27% and the small cap index advancing approximately 1.48%.

Nifty Outlook                            

 Index formed a bullish candlestick pattern with a higher high and a higher low for the second week in a row highlighting continuation of the pullback as index in the process retraced more than 50% of its prior decline 26,373 to 22,183. Going ahead bias remain positive a follow through strength above last week high 24,400 will trigger further momentum, potentially leading the index towards the 24,700–24,800 range being the confluence of the 200 days EMA and the previous breakdown area. Short-term support is positioned around 23,550. This region aligns with the last week low and 20-day exponential moving average (EMA). Holding above this support band would help sustain the current pullback trend.

Bank Nifty Outlook

The index on the weekly chart formed a bullish candlestick pattern characterized by a higher high and a higher low, indicating a continuation of the pullback. The index in the process retraced more than 50% of its prior decline from 61,764 to 49,955. Going ahead, a follow through strength above last week high of 56834 will open further upside towards 58,000 levels being the previous gap area and key retracement of the previous decline. From a short-term perspective, support is placed in the range of 54,500–54,000 zone, which coincides with the confluence of the last week low and the 20-day EMA. Sustaining above this support band will keep the current pullback trend intact.

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