Daily Markets Wrap - April 20, 2022 - HDFC Securities

Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty broke the 5 day losing streak on April 20, boosted by positive global cues. Nifty opened gap up and remained in a 160 point band with an upward bias through the day. At close Nifty was up 1.05% or 177.9 points at 17136.5.

Volumes on the NSE were a little lower than recent average. Among sectors, Auto, Telecom, IT, Healthcare and Oil & Gas gained the most while Metals, Banks and Capital Goods lost the most. BSE Smallcap and Midcap indices rose 0.36-0.45%, underperforming the Nifty.

Asian stock markets were mostly higher on Wednesday, following the broadly positive cues overnight from Wall Street, as traders reacted positively to some of the latest corporate earnings news and also indulged in buy on dips phenomenon. China and Hongkong markets ended in the negative after the Chinese central bank kept its benchmark lending rates unchanged, despite frequent government pledges to support a slowing economy. European stock markets managed to push cautiously higher on Wednesday, staging a minor relief rally amid a slew of recent earnings updates that reassured investors that profits can overcome economic hurdles.

Nifty has formed an inside bar i.e. the high low bar of April 20 is within those of April 19. This does not have any predictive value. Only when the high of April 19 (17,276) is breached, one can turn mildly bullish. On falls, 16959-16980 could provide support. The lower than normal volumes suggests that the upmove has got more to do with slower FPI sales than aggressive buying.

Source : Equity Bulls

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