Stock market recap: Indian equity benchmark indices ended the week on a sombre note, with the Nifty 50 falling 275.10 points, or 1.14%, to close at 23,897.95, while the BSE Sensex dropped nearly 983 points to settle at 76,681.29.
Friday's session was marked by a clear risk-off tone as escalating geopolitical tensions in West Asia, particularly around the Strait of Hormuz, pushed Brent crude back above $105 a barrel.
Sector-wise, IT stocks led the decline, with the Nifty IT index tumbling 5.29% after disappointing Q4 guidance from heavyweights such as Infosys triggered a broad-based sell-off in technology names.
Market breadth remained sharply negative, with an advance-decline ratio of 863:2429, indicating nearly three stocks fell for every one that gained.
Volatility also picked up, with India VIX rising 6.3%, suggesting markets may remain in a consolidation phase as investors contend with persistent global headwinds and the ongoing earnings season.
Two stock recommendations by MarketSmith India for 27 April:
Buy: Vardhman Textiles Ltd (current price: ₹590)
- Why it’s recommended: strong presence in textile value chain, diversified product portfolio, consistent revenue and profit growth, healthy balance sheet with low debt, strong export demand, integrated manufacturing operations, experienced management, and beneficiary of China+1 trend
- Key metrics: P/E: 21.98, 52-week high: ₹602.60, volume: ₹170.04 crore
- Technical analysis: Tight range breakout
- Risk factors: cyclical textile industry, dependence on cotton prices, export market volatility, currency fluctuation risk, margin pressure from input costs, global demand slowdown risk, competition from low-cost countries, and regulatory and policy changes
- Buy: ₹585–593
- Target price: ₹680 in two to three months
- Stop loss: ₹550
Buy: RBL Bank Ltd (current price: ₹321)
- Why it’s recommended: strong retail-focused growth strategy, improving capital position (planned infusion), growth in advances and deposits, expanding customer base and branch network, focus on secured retail lending, digital banking and innovation push, stable asset quality trend (recent), and turnaround potential with strategic stake deal
- Key metrics: P/E:26.77, 52-week high: ₹340.40, volume: ₹397.91 crore
- Technical analysis: Trendline Breakout
- Risk factors: volatile profitability with inconsistent earnings, declining margins (NIM and profit margin), high dependence on bulk deposits, elevated cost of funds, asset quality and NPA risk, high competition in the banking sector, regulatory and approval risks related to the stake deal, and sensitivity to interest rate cycles
- Buy at: ₹319–224
- Target price: ₹350 in two to three months
- Stop loss: ₹308
Nifty 50 performance on 24 April
Indian equities ended lower on 24 April, with the Nifty 50 declining 275 points, or 1.14%, to close at 23,897.95, reflecting sustained selling pressure through the session after an early dip. Market breadth remained decisively weak, with 863 stocks advancing against 2,429 declines, signalling broad-based risk aversion.
Sectorally, the sell-off was led by IT, which dropped about 5.3%, likely on global growth concerns and currency moves. Pharma, media and healthcare also posted notable losses. Financials and autos declined moderately, offering little support to the index, while defensives such as FMCG failed to cushion the fall. The absence of any major sectoral gainers underscored the negative sentiment.
The index continues to show a short-term corrective bias, with recent price action indicating an inability to sustain higher levels after the March rebound. It has slipped below its near-term moving averages (20- and 50-day), pointing to weakening momentum, and remains below a declining trendline from recent swing highs, reinforcing a bearish near-term structure.
Momentum indicators suggest limited support so far. The RSI is hovering in the mid-40s to low-50s range, indicating a loss of bullish momentum and a neutral-to-bearish tilt without entering oversold territory, leaving room for further downside. The MACD, despite a recent positive crossover, remains close to the zero line with a flattened histogram, signalling a lack of strong directional conviction and the risk of another rollover if selling persists.
According to O’Neil’s methodology, the market has transitioned to a “Confirmed Uptrend” from a “Rally Attempt.”
Technically, the index faces stiff resistance around 24,600, reinforcing this zone as a near-term supply area, while the breach of the 50-day moving average signals weakening trend strength. On the downside, the 23,900 level is expected to act as immediate support. A sustained break below this could open the way toward 23,500, which served as a strong base in the previous corrective phase. On the upside, any recovery is likely to face resistance in the 24,350–24,600 range.
Nifty Bank's performance
Nifty Bank ended marginally lower in a subdued session, opening on a softer note and failing to hold early gains. The index opened at 56,170.20, rose to an intraday high of 56,460.50, slipped to a low of 55,750.40, and closed at 56,089.75, down 0.38%. The price action indicates profit-booking near intraday highs, which capped upside and dragged the index lower into the close.
Although it recovered from the day’s low, the inability to sustain above key short-term averages points to persistent supply pressure. Overall, the session reflects indecision, with sellers active at higher levels and buyers attempting to defend near-term support.
Momentum indicators offer mixed signals. The RSI is around 52, placing it in neutral territory with a slight positive bias, suggesting easing downside momentum but limited bullish conviction. The MACD shows early signs of a bullish crossover, with the histogram turning positive, indicating improving momentum after a recent corrective phase. However, the crossover remains tentative and requires confirmation through follow-through price action. Together, stabilising RSI and a tentative MACD crossover suggest the possibility of base formation, though the trend remains fragile without sustained buying above resistance.
Technically, immediate support is seen in the 55,750–55,700 zone, aligned with recent swing lows, followed by a stronger base near 54,400 (21-day SMA). On the upside, resistance lies at 56,400–56,800, coinciding with the 50-day SMA, with a more significant hurdle at 57,200–57,300 near the 200-day SMA. A decisive move above this zone could trigger short covering and push the index toward 58,100. In the near term, the index is likely to consolidate within a broad range, with a mild upward bias if support levels hold. Macro stability and banking sector flows will be key to determining whether this recovery attempt evolves into a sustained uptrend.
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.
Trade name: William O’Neil India Pvt. Ltd.
Sebi Registration No.: INH000015543
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.