Indian Equity Markets Close with Minor Gains Amidst Volatility and Weak Global Cues.
On April 20, 2023, the Indian equity markets closed with minor gains, following a day of volatility caused by the weekly index options expiry on the National Stock Exchange (NSE), weak global cues, and Foreign Institutional Investors (FIIs) outflows.
Key Points:
Sectors such as banking, auto, and media were in demand, while pharma, realty, and metal stocks saw selling pressure.
The broader markets also ended with minor gains.
The Nifty and Bank Nifty futures prices moved in a positive direction, and they closed higher by 0.03% and 0.22%, respectively.
For April 21, 2023, the primary trend in Nifty futures is mild negative, while the Bank Nifty futures' primary trend is positive.
Global Market Challenges
The global markets faced challenges due to the persistent threat of inflation and caution among traders ahead of an expected interest rate hike by the US Federal Reserve next month. European markets traded lower due to weak quarterly results from Tesla, which dampened the market mood.
Indian Stock Market Analysis
The Indian stock market ended on a flat note on April 20, 2023, amidst volatility, with pharma and realty stocks dragging the BSE midcap and smallcap indices. Selective buying in financials, telecom, and utility stocks helped end the three-day losing streak. However, with foreign institutional investors turning sellers in the past few sessions and global central banks signaling hawkish bets ahead, traders maintained a cautious stance.
Technical Analysis:
The market was witnessing non-directional activity near the 200-day Simple Moving Average and holding a lower top formation on intraday charts.
A fresh uptrend would be possible only after the dismissal of the 17,700 level, and above that, the index could move up to 17,800-17,825.
On the downside, if it falls below 17,700, the weak sentiment is likely to continue till 17,550-17,500 levels.
In summary,
the Indian equity markets witnessed minor gains amidst volatility and weak global cues, with banking, auto, and media stocks performing well. However, pharma, realty, and metal stocks saw selling pressure, and caution among traders persisted due to the threat of inflation and an expected interest rate hike by the US Federal Reserve. Technical analysis suggests that the market may witness a fresh uptrend only if it surpasses the 17,700 level.
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