Stock market recap: Indian equity markets ended the week on a firm note, with the Nifty 50 rising 156.8 points, or 0.65%, to close at 24,353.55. Easing tensions in West Asia and a cooling India VIX, down about 5% to 17.21, lifted sentiment, pushing investors into a risk-on mode.
Market breadth was strong, with an advance-decline ratio of 2.6:1 as 2,364 stocks rose against 894 declines on the NSE.
Among sectors, the Nifty FMCG index led gains, climbing 2.65% on the back of a nearly 5% jump in Hindustan Unilever, driven by upbeat volume growth expectations. Nifty Oil & Gas and Metals also advanced more than 1% each, tracking stabilising global crude and commodity prices.
IT was the only laggard, ending marginally lower amid cautious guidance from major players such as Wipro.
Two stock recommendations by MarketSmith India for 20 April:
Buy: Privi Speciality Chemicals Ltd (current price: ₹3,133)
- Why it’s recommended: Strong position in aroma chemicals niche, long-term contracts with global clients, consistent revenue and profit growth, capacity expansion plans in place, export-driven business with global reach, improving operating margins, and strategic backward integration.
- Key metrics: P/E: 40.13, 52-week high: ₹3,440.50, volume: ₹113.90 crore
- Technical analysis: Tight range breakout
- Risk factors: High dependence on a few key customers, raw material price volatility, forex fluctuation impact, cyclical demand in end-user industries, execution risk in expansions, environmental and regulatory risks, and rising competition globally
- Buy: ₹3,100–3,150
- Target price: ₹3,580 in two to three months
- Stop loss: ₹2,920
Buy: Jindal Stainless Ltd (current price: ₹788)
- Why it’s recommended: Market leader in the stainless steel segment, strong capacity expansion pipeline, wide product portfolio across industries, global presence with export markets, backward integration improving cost efficiency, beneficiary of rising domestic steel demand, and focus on value-added products
- Key metrics: P/E:22.02, 52-week high: ₹884.00, volume: ₹39.03 crore
- Technical analysis: Trendline Breakout
- Risk factors: Highly cyclical steel industry, volatility in raw material prices, export demand uncertainty (US/Europe), high capex and debt levels, margin pressure from input cost rise, limited diversification beyond steel, and earnings volatility with market sentiment
- Buy at: ₹784–795
- Target price: ₹890 in two to three months
- Stop loss: ₹750
Nifty 50 performance on 17 April
Indian equities ended on a firm note, with the Nifty 50 rising 0.65% (156.8 points) to close at 24,353.55, near the day’s high, signalling a steady intraday uptrend. Market breadth remained strong, with 2,364 stocks advancing against 894 declines on the National Stock Exchange, pointing to broad-based buying.
Sectorally, FMCG led gains, while financials, oil and gas, metals and realty also supported the move. Private and PSU banks advanced, lending strength to the benchmark, while IT remained subdued and closed marginally lower. Mid- and small-cap stocks continued to show resilience in line with the broader market trend.
The index is extending a short-term recovery after the recent correction, with prices forming a sequence of higher lows in recent sessions. However, it is now hovering around its 50-day moving average, which may act as a near-term supply zone and trigger some profit-taking.
Momentum indicators suggest improving strength. The relative strength index (RSI) has climbed to around 57, indicating room for further upside without entering overbought territory, while the moving average convergence divergence (MACD) shows a positive crossover, signalling strengthening near-term momentum.
According to O’Neil’s market direction framework, the market has shifted into a “confirmed uptrend” from a “rally attempt”.
Technically, immediate resistance is seen in the 24,400–24,500 range, with a stronger hurdle near 24,800, where key moving averages converge. On the downside, support is placed at 24,000–23,950; a break below this zone could open the door to further weakness towards 23,500.
Nifty Bank's performance
Nifty Bank opened higher at 56,072.40 and extended gains through the session, hitting an intraday high of 56,628.70 before closing near the day’s peak at 56,565.70, up 0.85%. The index briefly dipped to 55,841.65 but saw steady buying, indicating a recovery with buyers firmly in control. The formation of a strong bullish candle near the upper end of the range points to improving sentiment and a stabilisation around key moving averages.
Momentum indicators are turning supportive. The relative strength index (RSI), at around 56, is trending higher, suggesting strengthening momentum with room for further upside. The moving average convergence divergence (MACD) has also turned positive with a bullish crossover, signalling a shift toward a near-term upward bias.
On the technical front, immediate support is placed at 55,000–54,500, a zone that previously acted as a demand base. Resistance is seen at 56,800–57,200, aligned with the 100- and 200-day moving averages, with a stronger hurdle near 58,000. A sustained move above 57,000 could trigger further short covering, while failure to hold above 56,000 may lead to renewed consolidation.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.