FII flows remained inconsistent throughout the week.
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, April 23, 2026: Global equity markets finished on a mixed note this week. U.S. and Japanese indices hit record peaks. Surging oil prices, driven by supply concerns in the Strait of Hormuz, dampened investor sentiment. In India, a strong start to the week gave way to a late-week sell-off as geopolitical tensions weighed on the market. While the Nifty 50 and BSE 30 closed in the red, midcap and small-cap stocks managed to outperform their larger counterparts. IT sector was the biggest laggard, as the stocks reacted to Q4FY26 earnings and FY27E guidance. Investors rotated into Energy, FMCG, and Pharma, seeking safety amid volatility. FII flows remained inconsistent throughout the week.
As the Q4FY26 earnings season begins with results largely meeting expectations, the market’s near-term trajectory will likely be dictated by crude oil fluctuations, geopolitical updates, and upcoming corporate results & management commentary.
Amol Athawale, VP Technical Research, Kotak Securities, adds:
In the last week, the benchmark indices witnessed profit booking at higher levels. The Nifty ended 1.85 percent lower, while the Sensex was down over 1800 points. Among sectors, the IT index corrected sharply, shed over 10 percent, whereas despite weak market sentiment, FMCG and Energy indices rallied over 2 percent. During the week, due to profit booking at higher levels, the market slipped below the 50-day SMA (Simple Moving Average) of 24,300/78000, and post-breakdown, selling pressure intensified.
Technically, on weekly charts, it has formed a bearish candle, and on daily charts, a reversal formation has appeared, which supports further weakness from the current levels. We are of the view that 24,000/77000 would act as a crucial reference point for traders. Below this level, the correction wave is likely to continue, with the index potentially slipping to the 20-day SMA or 23,635/76000. Further downside could also continue, dragging the index to the 23,500-23450/ 75700-75500 range.
On the upside, above 24,000/77000, the index could bounce back up to 24,300–24,350/78000-78200.
For Bank Nifty, as long as it is trading below the 50-day SMA or 56,800, a weak formation is likely to continue. On the downside, it could retest levels of 55,000–54,750. Conversely, above the 50-day SMA of 56,800, the next resistance for Bank Nifty would be in the 57,500–58,000 range.
