Indian Markets End Slightly Higher Despite Late Selling Pressure

On April 23, 2024, the Indian stock market managed to close with marginal gains after surrendering much of its early-day progress during a final hour of selling. The Sensex ended the day 89.83 points higher at 73,738.45, marking a 0.12 percent rise, while the Nifty gained 31.60 points or 0.14 percent to finish at 22,368. This marks a third consecutive session of upward movement for the key indices.

The trading day began positively, buoyed by encouraging global cues and a reduction in geopolitical tensions in West Asia, which helped ease volatility considerably. However, as the market approached closing, investors engaged in profit-taking that trimmed most of the day’s earlier gains.

Among the leading contributors to the Nifty’s uptick were Grasim Industries, Bharti Airtel, Nestle India, Maruti Suzuki, and HCL Technologies. On the other side, notable declines were witnessed in shares of Sun Pharma, BPCL, Reliance Industries, Mahindra & Mahindra (M&M), and Hindalco Industries.

Sector-wise, the healthcare, metal, oil and gas, and energy industries faced losses ranging from 0.3 to 0.8 percent. Conversely, sectors such as FMCG, power, IT, real estate, and automotive recorded gains between 0.4 and 2 percent. Midcap and smallcap stocks outperformed, with the BSE midcap index rising 0.5 percent and the smallcap index up by 1 percent, highlighting stronger investor interest in broader market segments.

Volume spikes of over 900 percent were reported in stocks like Balrampur Chini Mills, Bandhan Bank, and Metropolis Healthcare, indicating heightened trading activity. Additionally, a long build-up pattern was observed in Aditya Birla Fashion & Retail, Aditya Birla Capital, and the Multi Commodity Exchange of India. Meanwhile, short positions increased in Mahindra & Mahindra Financial Services, ABB India, and Sun Pharma.

More than 250 companies hit their 52-week high on the BSE, including prominent names such as Aditya Birla Capital, Amara Raja Batteries, Arvind, Bharti Airtel, Cochin Shipyard, Cummins India, Eicher Motors, Grasim Industries, Indraprastha Gas, LIC Housing Finance, Maruti Suzuki, Max Financial, MOIL, Sobha, Sterling Wilson, Sudarshan Chemicals, Tejas Networks, and Voltas. This breadth of new highs reflects a generally positive momentum across various sectors.

Looking ahead to April 24, market experts shared their outlook. Aditya Gaggar, Director of Progressive Shares, noted that the range-bound trading pattern concluded higher, with the Nifty settling at 22,368. Realty emerged as the strongest sector, gaining over 2.6 percent, followed by FMCG and media. Pharma experienced the steepest correction of around 0.9 percent. Gaggar pointed out that chemical and railway stocks regained traction by breaking out of previous congestion zones, and broader market segments continued to outperform frontline indices.

Gaggar emphasized that the Nifty faces resistance in the 22,430-22,500 range, which must be overcome to maintain an upward trajectory. Support is expected near the 50-day moving average at 22,190, which could provide a cushion in case of declines.

Rupak De, Senior Technical Analyst at LKP Securities, described the market as largely sideways without a clear directional breakout. He suggested the overall trend remains constructive since the Nifty closed above a key moving average. The Relative Strength Index (RSI) showed a bullish crossover below 60, which is a positive technical signal. De identified resistance in the 22,350 to 22,400 zone, with a break above 22,400 potentially sparking a stronger rally. On the downside, support near 22,250 will be critical; falling below this could dampen bullish sentiment.

Investors are advised to remain cautious and consult certified financial advisors before making investment decisions, as market conditions can change rapidly. The views expressed by market analysts are their own and do not represent official advice from Moneycontrol or its affiliates.

This market update fits into the broader context of Indian equities navigating global geopolitical uncertainties and domestic economic factors. The cautious optimism reflected in the market’s performance suggests that investors are weighing both opportunities and risks carefully. Given the mixed sector performance and the pressure seen in the final trading hour, market participants will be closely monitoring upcoming economic data and corporate earnings for further direction.