Stock market today: The key domestic indices, Nifty 50 and Sensex, experienced a decline on Monday, April 6, continuing a trend of muted sentiment following six consecutive weekly losses, as concerns regarding a possible escalation in the Middle East conflict surpassed positive signals from robust quarterly corporate results.
The Nifty 50 was flat at 22,712 . 20, and the Sensex fell by 0.07% to 73,264.89 at 12:27 IST.
Out of the 16 major sectors, eleven reported losses. The broader small-cap sector decreased by 0.3%, while mid-cap stocks remained relatively stable.
Brent crude oil prices surged to approximately $110 per barrel, whereas Asian markets displayed mixed results following Trump’s warnings to Iran.
Market Views – Vinay Rajani, Senior Technical and Derivative Analyst, HDFC Securities
Nifty 50 Outlook
Nifty 50 has extended its corrective phase with a volatile tone and continued the week with an existing positive divergence. Now, a triple positive divergence is visible in the RSI oscillator. Sustained positive divergence after panic selling is an early sign of a bullish reversal. Thursday’s recovery from the lows was also very strong. Immediate short-term resistance is placed at 22,950; a breakout above this level could take the index toward the next key level of 23,465 further to 23,783. On the downside, short-term support is at 22,400, followed by 22,180. A failure to hold 22,180 could drag the index down to 21,740. From an Elliott Wave perspective, elongated corrective phase i.e. “Wave c of B” appears to have ended.
Bank Nifty has been forming an Ending Diagonal pattern with positive divergence. Traders can turn positive above 52,025. A close above the 10-day EMA (52,575) could confirm a bullish reversal, and the index could head toward 54,150. Both the Midcap and Smallcap indices remain in a downtrend and showing early signs of reversal. The seasonality chart suggests that April has a greater probability of positive performance and higher returns.
The Nifty IT index turned to uptrend as it closed above 21 day EMA, IT stocks can be considered for short-term longs.
2 stocks to buy in the near-term
Buy GE Shipping 1,483| Target ₹1,590 | Stop-loss ₹1,410
share price is on the verge of breaking out from fresh all time high. Stock is placed above all key moving averages. Indicators and oscillators have been showing strength in this uptrend on weekly and monthly charts.
Buy Arvind Ltd 365| Target ₹388 | Stop-loss ₹344
share price recently found support on its 200 DEMA and resumed its uptrend. 50 DEMA is placed above 200 DEMA, which indicates positional uptrend for the stock. Indicators and oscillators have been showing strength in this uptrend on the daily chart.
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 taking any investment decisions.