Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty fell for the fourth consecutive session on April 18, dragged down by weak global cues and unencouraging first batch of Q4 corporate results. Nifty opened gap down and kept falling to make an intra day low at 1300 Hrs. A feeble recovery ensued and Nifty closed 1.73% or 302 points lower at 17173.6.
Volumes on the NSE were higher than recent average. Among sectors, Power and FMCG led the gainers while IT, Realty, Banks and Telecom were the main losers. BSE Midcap and Smallcap indices outperformed falling 0.95-1%.
India's inflation based on the Wholesale Price Index (WPI) rose to a four-month high of 14.55 percent in March from 13.11 percent in February. The high rate of inflation in March, 2022 is primarily due to rise in prices of crude petroleum & natural gas, mineral oils, basic metals, etc owing to disruption in global supply chain caused by Russia-Ukraine conflict.
Asian stocks closed lower on Monday in cautious trade, as figures showed China's economic growth accelerated in the first quarter of the year, but the government warned of "significant challenges" ahead. Most European markets were shut with public holiday for Easter Monday.
Nifty fell once again with a downgap. On a three week basis, the Nifty has formed a bearish island reversal. It has however formed a doji after a fall on daily charts suggesting possibility of a temporary halt in the downfall. 17003-17387 could be the band for the Nifty over the next few days.