Market monitors developments between Israel and Iran

Mumbai, Apr 15: Last week, profit-booking was observed in the benchmark indices the Sensex closing at 74,245. The metal, oil and gas indices outperformed by rising over 2%, while the pharma and PSU bank indices declined by over 1.5%.

Although Sensex reached a new all-time high of 75124.28, they fell sharply on Friday due to profit booking.

Technically, the market has formed a reversal on the daily chart, and a shooting star candlestick pattern on the weekly chart, indicating temporary weakness. However, the medium-term structure of the market is still positive.

“Our view is that the weak sentiment will likely continue as long as the index is trading below 74,000. If the market falls below that point, it may slip to 73400-73100 (support of 20 days SMA),” says Shrikant Chouhan, Head Equity Research, Kotak Securities.

Conversely, if the sentiment changes and the market rises above 74,000, it may retest 74500-74800 levels. However, a closing of the Sensex below 73,100 could quickly send the market to 72500 levels.

In the wake of Friday's trading session, Nifty encountered bearish trends amidst lingering concerns over CPI inflation in the US. Speculation mounted regarding the Fed's rate-cutting plans for 2024, dampening market sentiment.

He added “Optimism prevails if Nifty maintains support above the 22367 mark. Investors are now closely monitoring developments between Israel and Iran, which could impact oil supplies,” says Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Meanwhile, key events such as US Retail Sales data, Chinese GDP figures, and Corporate India's Q4 earnings season are on the horizon, influencing market dynamics.

Despite challenges posed by inflation and treasury yields, hopes of strong corporate profits in India overshadow concerns. Recommended trades focus on buying opportunities with specific bullish outlooks for stocks like APOLLO HOSPITALS, NTPC, and METROPOLIS, supported by momentum strategies.