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- Gift Nifty Up 250 Points | Iran US Tension & 5 Factors Guide Market Move
Mumbai51 minutes ago
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The week starting from 20th April may start with a bullish trend in the stock market. Expectations of an early end to America’s war with Iran and falling crude oil prices are supporting the market. Apart from this, fourth quarter results, activity of foreign investors and global market movements will also be the main factors determining the direction of the market.
Let us understand what can happen in the market this week…
Support and resistance
Support Zone: 23,940 | 23,850 | 23,462 | 23,330 | 22,857
Support means, the level where the stock or index gets support from falling down. The price does not go down easily due to increase in purchasing here. There may be a buying opportunity here.
Resistance Zone: 24,387 | 24,450 | 24,538 | 24,650 | 25,002
Resistance means the level where there is a hindrance in the stock or index going up. This happens due to increase in sales. There is hope for an uptrend after crossing the resistance zone.
Note: Support and resistance levels are as per the report of Wealth View Analytics.
Now 5 factors which can decide the direction of the market…
1. Hope for end of Iran-US war
To reduce tension between Iran and America, the next round of talks can start in Pakistan from Monday. Stock market sentiments are expected to improve due to news of easing tensions.
On Friday, due to the news of the opening of the Hormuz Strait, an important sea route for oil supply, Brent crude has become cheaper by about 10% to $ 90 per barrel. Its effect was visible on the stock market also. Gift Nifty closed 250 points higher. The American market also rose by about 1.50%.
2. Buying and selling of foreign investors
Foreign investors bought more than ₹1,500 crore in Indian stocks between April 15-17. Bought shares worth ₹683 crore on Friday alone. If the attitude of foreign investors towards the Indian market remains the same in future, then a rise in the market can be expected.
3. Results of companies will decide the direction
The market will also keep an eye on the fourth quarter (Q4) results coming this week. Companies like Axis Bank, Reliance Industries, M&M, Adani Green Energy, IndusInd Bank, Infosys, Adani Energy Solutions, HCL Technologies and Tata Alexji will declare the results.
Three big private banks released Q4 FY26 results on Saturday:
- HDFC Bank’s profit increased by 9% to ₹19,221 crore.
- ICICI Bank’s profit increased by 8.5% to ₹13,702 crore.
- Yes Bank’s profit jumped 44.8% to ₹1,068 crore.
4. Investors keep an eye on the movement of rupee
The rupee closed 0.3% higher at 92.92 against the dollar. On March 30, the rupee was at a record low of 95.21. Since then there has been a good recovery. According to experts, there is immediate support for the rupee at 92.28 and resistance at 93.50-93.68.
Due to strengthening of rupee, imports become cheaper, which reduces inflation and creates a positive environment in the stock market. On the contrary, the weakness of the rupee reduces the profits of foreign investors (FIIs), causing them to withdraw money from the market.
5. Technical chart of Nifty
Ponmudi R, CEO of Enrich Money. According to this, if Nifty remains above 24,400 then it can go up to 24,800-25,000. On the downside, there is support at 24,000 and 23,800 is a strong base. The RSI is also close to 57, indicating a market correction.
Ajit Mishra, Research SVP, Religare Broking, believes that investors should maintain balance and bet on selected stocks only. Investors should keep more of their portfolio in strong large-cap stocks with good fundamentals.
Sensex rose 505 points on Friday
On April 17, the Sensex closed at 78,494 with a rise of 505 points (0.65%). Nifty also rose by 157 points (0.65%), reaching 24,354.
Knowledge Part:
Gift Nifty: Mainly foreign investors and big institutions trade in GIFT Nifty. It is traded in Gift City of Gujarat. Before the opening of the Indian market, its fluctuations give an idea of the opening of the domestic market.
Strait of Hormuz: About 20 to 25 percent of the world’s total oil trade passes through this route. Oil from countries like Saudi Arabia, Iraq, UAE and Kuwait reaches countries like India, China and Japan through this route.
Relative Strength Index: It is like a meter that tells how fast a stock or index is being bought or sold. Its value ranges between 0 to 100. Generally, above 70 is considered ‘overbought’ and below 30 is considered ‘oversold’.
Disclaimer: This article is for information only. The opinions and advice given above are of individual analysts or broking companies and not of Dainik Bhaskar. We advise investors to consult certified experts before taking any investment decision.
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