The Indian market failed to hold onto gains and closed in the red on April 23 on weak global cues and consistent record rise seen in coronavirus cases in the country.
The Sensex closed 202 points, or 0.42 percent, lower at 47,878.45 and the Nifty ended 65 points, or 0.45 percent, down at 14,341.35.
Sectorally, buying was seen in power, utilities, and public sector while selling was recorded in telecom, realty, FMCG, and IT space.
The broader market outperformed the benchmarks. The S&P BSE midcap index rose 0.16 percent, while the smallcap index closed with gains of 0.5 percent.
“Following weakness in the US market, domestic market continued to be under the grip of bears. Reports of a possible increase in capital gains tax in the US took a toll on the global equities,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
“Increasing COVID-19 cases and lockdown also fueled a downward trend in the domestic market. All major sectors were in negative territory, while pharma and mid and smallcaps outperformed the broad market,” he said.
Here is what experts suggest investors should do on April 26:
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The Nifty closed way above 14,200, which is a positive sign for the markets. If we break this level, the markets can slide to 13,800-13,900. The upside is capped at 14,550-14,600 and any rally will be used to short the markets.
Rohit Singre, Senior Technical Analyst, LKP Securities
The index closed the week on a negative note at 14,333, with a loss of nearly two percent on a weekly basis and formed a Doji candle for the third consecutive week hinting at uncertainty in the markets.
The index has created a good base near 14,250-14,200 zone holding above said levels. The structure will be positive and any close below the said levels can drag the index to much lower levels. On the higher side, the stiff hurdle is placed at 14,450-14,500 zone fresh strength above 14,500 zone.
Ashis Biswas, Head, Technical Research, CapitalVia Global Research
The Nifty failed to show resilience to stay above the 14,400. While it is subject to further price action evolution, the technical factors are aligned to support a lacklustre market movement.
Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services Limited
Technically, the Nifty formed a small-bodied candle similar to Doji on a daily and weekly scale, with long shadows indicating a tug of war between bulls and bears.
Now, it has to cross and hold above 14,400 zones to witness a bounce towards 14,600 and 14,700, while on the downside, support exists at 14,250 and 14,150 zones.
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