Sensex, Nifty Up Again as West Asia Worries Ease Temporarily

Tanushree Jaiswal Tanushree Jaiswal 22nd April 2024 - 02:57 pm
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The Indian equity benchmarks, the 30-pack Sensex, and the broader Nifty, extended gains to its second straight day on April 22nd morning, in line with most other Asian markets, as fears of another market flare-up has reduced following Israel's strike on Iran. Analysts predict corporate earnings season, foreign flows, monthly F&O expiry and macro-economic data will direct the market this week.

The Sensex was up 335.14 points, or 0.46% at 73,423.47, and the Nifty was up 111 points, or 0.50%, at 22,258. The market breadth was with the gainers, as around 2,284 shares advanced, 505 declined and 105 were unchanged.

Analysts have, however, warned of uncertainty and are advising investors to avoid aggressive bets until the situation cools down completely.

Deepak Jasani, Head of Retail Research, HDFC Securities, said, “A bullish piercing pattern has been formed on daily charts, which indicates a short-term upward reversal and Nifty could in the near-term face resistance from the 22,427-22,503 band, while 21,710-21,778 band is likely to offer support," he added.

Sameet Chavan, Head Research, Technical and Derivative at Angel One, suggested, “One needs to follow geopolitical developments and avoid aggressive overnight bets. This week is expected to be volatile amid contract expiry and hence stock-selective strategy is advisable." He added being cautious of near-term trends amidst ongoing geopolitical conflict in West Asia, which can turn out to be deceptive and trap traders.

Broader markets outperformed benchmarks within the first hour of trade, with BSE Midcap and BSE Smallcap surging up to 1%. India VIX, which measures near-term volatility also cooled off by 2% to 13.19.

All sectors traded with gains led by Nifty PSU Bank index that climbed over a percent led by SBI. It was followed by gains in Nifty Realty, Nifty Metal, and Nifty Auto indices that surged up a percent as well. 

Asian markets trade higher; US futures rise slightly

Asia-Pacific markets also rebounded from Friday's massive selloff.

Japan's Nikkei 225 rose 0.3%, while South Korea's Kospi rose 0.3%, and Australia's S&P 200 index gained 0.8%. Hong Kong's Hang Seng index also jumped over a percent.

However, equity futures linked to Wall Street pushed higher this morning after seeing a large tech selloff last week. Dow Jones Futures rose 0.1%, and NASDAQ Futures and S&P 500 Futures gained up to 0.3%.

All eyes will be on several economic updates, with US GDP slated to release on April 25. Corporate earnings also decide market trends, with names like Tesla, Meta, Alphabet, and Microsoft set to report their financials this week.

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