Pre-market trend: slight build-up was seen in more than 90 stocks with the likes of Atul, IndiaMart International, Bata India, and SAIL.
Experts stated that the market is expected to remain in the hands of bears and that consolidation is likely to continue in the upcoming sessions with support at the 22,200 level. This is due to the global unease surrounding the Iran-Israel conflict and the formation of a bearish candlestick pattern on the daily charts with the momentum indicator RSI (relative strength index) showing a negative crossover (on a daily as well as weekly scale).
Pre-market analysis in the eyes of experts
Experts said that if this support breaks, the index may drop as far as 22,000, with 22,400–22,500 anticipated to be a major resistance zone on the upside.
On April 15, the Nifty 50 fell 247 points, or 1.1 percent, to 22,273 and produced a bearish candlestick pattern with an upper shadow on the daily charts. The BSE Sensex also plummeted 845 points to 73,400.
It will be critical to see if the index can find support at the 40 DEMA (days exponential moving average), which is situated at 22,200, in the upcoming session. This level will be crucial for an index decline, according to 5paisa.com head researcher Ruchit Jain.
According to him, the index must rise over 22,500 in order for the upward trend to resume. As a result, he counseled traders to avoid taking up large holdings and to trade stocks only very carefully.
Senior technical analyst at LKP Securities Rupak De agrees that the short-term outlook is negative, but he doesn’t see a big drop coming just yet. Rather, he predicted that the index will likely oscillate between 22,200 and 22,400.
In contrast to benchmarks, the wider markets have experienced greater correction. The Nifty Smallcap 100 and Midcap 100 indexes had declines of 1.7% and 1.6%, respectively.
Bulk Deals
Stocks that are making the news
On April 16, SG Mart, CRISIL, Den Networks, Integra Essentia, and Lotus Chocolate Company will all disclose their quarterly financial results.
Cipla
Through a slump sale arrangement, Cipla Health, a wholly-owned subsidiary of the firm, has agreed to buy the distribution and marketing business endeavor of cosmetics and personal care business from Ivia Beaute, India, as a continuing concern.
Jio Financial Services
In order to establish a 50:50 joint venture for wealth management and brokerage operations in India, Jio Financial has entered into an agreement with BlackRock Inc. and BlackRock Advisors Singapore Pte.
Gujarat Gas
To increase the range and accessibility of energy options for customers, the business and Indian Oil Corporation have inked a non-binding Memorandum of Understanding (MOU).
LTIMindtree
Effective April 15, Pankaj Chugh and Gregory Dietrich have resigned from their positions as the company’s Executive Vice Presidents of Global Sales.
Brigade Enterprises
As of April 18, the board has named Jayant Bhalchandra Manmadkar as the real estate company’s chief financial officer.
Manappuram Finance
The gold loan financing firm said that its board of directors would convene on April 19 to discuss raising up to US$ 500 million through external commercial borrowings in one or more tranches.
NSE stock is prohibited from F&O
The National Stock Exchange (NSE) has retained Balrampur Chini Mills, GNFC, Hindustan Copper, India Cements, Metropolis Healthcare, National Aluminium Company, Piramal Enterprises, and SAIL on the F&O ban list for April 16. The additions include Bandhan Bank, Exide Industries, and Zee Entertainment Enterprises. Vodafone Idea was taken off of the aforementioned list.
Learn more about the escalating tensions between Israel and Iran and how it can affect Indian Stock Market. Read the full article here.