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Broad-based selling, weak global cues fuel sharp slump in key indices; realty, auto, energy stocks tank

Bank Nifty showed more strength compared to Nifty50

FPJ Web Desk | Updated on: Monday, April 25, 2022, 04:24 PM IST

Bank nifty showed more strength compared to Nifty 50 throughout the day and closed the session at 36,082.35 level with a moderate gain of 37.60 points./ Representative image |
Bank nifty showed more strength compared to Nifty 50 throughout the day and closed the session at 36,082.35 level with a moderate gain of 37.60 points./ Representative image |
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The benchmark stock indices closed lower on April 25, the first day of trading in the new week.

The Index had a gap down opening and showed weakness throughout the session as it made intraday low at 16,888.70 level and closed the session at 16,953.95 level with a loss of 218 points.

Bank nifty showed more strength compared to Nifty 50 throughout the day and closed the session at 36,082.35 level with a moderate gain of 37.60 points.

Benchmark indices ended lower for the second consecutive week on April 25 with Nifty below 17000 dragged by selling across the sectors amid weak global cues.

At close, the Sensex was down 617.26 points or 1.08 percent at 56,579.89. The Nifty was down 218.00 points or 1.27 percent at 16,954.00. About 1008 shares have advanced, 2435 shares declined, and 136 shares are unchanged.

Coal India, BPCL, Tata Steel, Hindalco Industries and SBI Life Insurance were among the top Nifty losers. Bajaj Auto, ICICI Bank, HDFC Bank, Maruti Suzuki and HDFC were among top gainers.

Palak Kothari, Research Analyst, Choice Broking said, Technically, on an hourly chart, The Index has been trading near the support zone and given closing below 17000 marks suggest bears are taking charge. Furthermore, on a daily chart, the index has taken support from lower Bollinger band and 50% RL of previous up move, which indicates pullback can be seen in the counter. The index has given closing below 200-Daily Simple Moving Averages indicates weakness in the counter. However, the momentum indicators STOCHASTIC & MACD are trading with negative crossover on a daily Charts which indicates downside movement can be seen. The Nifty may find support around 16,800 levels, while on the upside 17,240 may act as an immediate hurdle for the index. On the other hand, Bank nifty has support at 35,500 levels while resistance at 37,000 levels, he added.

Around 45 out of Nifty 50 stocks ended in Red which suggest broad based Selling. All the sectoral indices ended in the red. Except Nifty Bank, capital goods, FMCG, healthcare, IT, power, metal, oil & gas, realty were down 1-4 percent. VIX is also closed at 21.26 with a gain of 15.86 percent.

Indian equity markets continued to reel under pressure in late afternoon session on account of selling in frontline counter, said Mohit Nigam, Head - PMS, Hem Securities. Broader indices, closed with the loss of 1.27 percent.

Stocks from banking counters was the only sector which showcased some resilience, while stocks from realty, metal and telecom counters emerged as the laggards of the sector. Additional pressure came in as private report cut India's 2022-23 economic growth forecast by 70 basis points to 7 percent, citing slowing global growth due to high commodity prices, and weak local demand because of energy price hikes

The cooking oil national industry body -- Solvent Extractors' Association (SEA) of India has suggested immediate initiation of government to government (G2G) dialogue with Indonesia on the proposed palm oil export ban from April 28 by them as it would have an adverse repercussions in India.

On technical front, Nifty50 may take immediate support at 16,750 level and may face resistance at 17,250 level. In case of Bank Nifty, 35,500 and 36,650 levels may act as immediate support and resistance, Nigam added.

Asian markets trade lower

On the global front, all Asian markets were trading lower as fears grew that Beijing was on the verge of joining Shanghai in lockdowns.

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Published on: Monday, April 25, 2022, 04:12 PM IST