Will Nifty 50 Reclaim 24,000? Sensex Outlook Amid Global Uncertainty
Indian stock markets may open lower today, April 21, after three days of gains. This is mainly because of weak signals from global markets. The GIFT Nifty index was down by 100 points at 23,796 early in the morning, showing a likely weak start.
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Wall Street and Global Market Snapshot
On April 17, US stock market indices gave mixed signals. The S&P 500 ended just a bit higher (+0.13%), Nasdaq slipped slightly (-0.13%), while the Dow Jones rose sharply (+1.3%). US markets were closed on April 18 due to the Good Friday holiday.
On April 21 morning, Dow futures were down 300 points, while S&P 500 and Nasdaq futures also showed weakness. This points to negative investor sentiment globally.
Asian Markets Open Mixed
Asian markets showed mixed reactions early Monday. Japan’s Nikkei 225 fell over 1%, and Topix was down 0.9%. South Korea’s Kospi opened slightly higher, and China’s Shanghai Composite rose 0.4%. Investors are watching China’s interest rate decision amid trade tensions with the US.
Focus on Major Companies and Banking Sector
Investors will closely watch stocks of big companies like HDFC Bank, ICICI Bank, and Infosys after their quarterly earnings report. Banking stocks may continue to do well because of:
- Chances of more RBI rate cuts
- Better profit margins as banks lower savings interest rates
- Good asset quality
- Attractive stock valuations
Technical View: Key Support and Resistance Levels
Markets crossed important technical zones like the 20-day and 50-day moving averages last week, which is a positive sign. However, experts say the market may trade in a limited range in the short term due to overbought conditions.
According to Amol Athawale, VP at Kotak Securities:
- Support levels: 23,500 and 23,350
- Resistance levels: 24,000 and 24,200
FII Flows and Market Sentiment
Foreign investors invested Rs.8,500 crore in Indian markets last week. This comes after earlier withdrawals and shows renewed confidence due to:
- A strong domestic economy
- Lower inflation
- Less impact from global trade tensions
Also Read: FPIs invested Rs 8,500 crore in Indian stock market last week
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