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Market Closing Commentary

Indian benchmark indices closed down by around 0.5% on the Nifty monthly expiry session dated 28 April, primarily weighed down by weakness in the INR, rising crude oil prices and selling pressure in banking stocks. The decline followed the RBI’s confirmation of its expected credit loss framework and final asset classification norms, which raised concerns regarding higher provisioning requirements. At the close, the Sensex declined by 416.72 points (0.54%) to settle at 76,886.91, while the Nifty fell by 97 points (0.40%) to close at 23,995.70.

On the sectoral front, significant weakness was observed in Nifty PSU Banks and Private Banks, along with pressure in Nifty Auto and Nifty IT. On the other hand, pockets of strength were seen in Nifty Oil & Gas, Nifty Metal, and the Chemical space. The broader markets, however, displayed relative resilience with a positive bias. The Nifty Midcap index gained 0.28%, and the Small Cap index advanced by 0.42%, supported by stock-specific buying interest.

Nifty Outlook                            

 Index traded with high volatility on the monthly expiry session and formed a high wave candlestick pattern with a long upper shadow signaling consolidation around the 20 days EMA. Nifty on Tuesday’s session reacted lower from near the Friday’s high (24,200) and closed around the 24,000 levels. Index on expected lines is witnessing consolidation in the broad range of 23,600-24,400 amid stock specific action as we progress through the quarterly earning session.

Within the consolidation a move above Friday’s high of 24,206 will open further upside towards the upper band of the range placed around 24,400 levels. On the lower side a breach below last week low of 23,813 will open downside towards the 23,600 levels. Short-term support is positioned around 23,600–23,500 range being the confluence of the recent major low and 38.2% retracement of the last 3 weeks pullback (22,183-24,601). 

Bank Nifty Outlook

Index formed a sizable bearish candlestick pattern with a lower high and a lower low signaling continuation of the corrective decline for the fifth session.

Index on yesterday’s session has generated a breakdown below last week low signaling corrective bias and extension of the decline towards 24,500-24,000 levels. Overall, we expect the Bank Nifty to extend consolidation in the broad range of 54,500-57,500 amid stock specific action as we progress through the quarterly earning session of the banking stocks.

Within the consolidation only a move above 56,475 will open further upside towards the 57,000 and 57,500 levels in the coming sessions. From a short-term perspective, support is placed in the range of 54,500–54,000 zone, being the confluence of the recent low and 38.2% retracement of the last 3 weeks pullback (49,955-57,456).

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