Capital Market index outperformed, rallying 4.70 percent.
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, April 21, 2025: Today, the benchmark indices continued their positive momentum, with the Nifty ends 274 points higher, while the Sensex was up by 855 points. Among sectors, almost all major sectoral indices traded in positive territory, but the Capital Market index outperformed, rallying 4.70 percent. Technically, after a positive open, the market successfully cleared the 24,000/79000 mark and also surpassed the 200-day SMA (Simple Moving Average) mark, which is largely positive. We believe that the short-term market texture is bullish but may be overbought; hence, we could see some profit booking at higher levels.
For traders, the 24,200-24,325/79700-80000 range would act as key resistance areas, while 24,000/79000 and 23,900/78700 could serve as crucial support zones. For day traders, as long as the market is trading above 23,900/78700, buying on intraday corrections and selling on rallies would be the ideal strategy. However, if it falls below 23,900/78700, sentiment could change, and traders may prefer to exit their long positions.
Satish Chandra Aluri, Lemonn Markets Desk, adds: Benchmark indices posted sharp gains on Monday, extending the rally from last week. Broader Mid and Small caps also closed higher.
Markets opened higher and extended the gains throughout the day powered by broad based rally and positive domestic cues as strong bank earnings over the weekend boosted the overall sentiment. Quarterly earnings season is underway in full swing with heavyweight banks reporting results over the weekend largely above estimates with strong outlook and positive commentary. Notable names announcing earnings over the weekend include HDFC Bank, ICICI Bank, Yes Bank.
Bank Nifty hit record highs after the earnings announcements. Coupled with this, the US Dollar has weakened significantly owing to the pressure from Trump on the US Fed and chair Powell to cut rates, likely threatening its independence. Weakening USD is positive for emerging markets like India.
With foreign investors fast losing their confidence in the US economy and Trump’s flip-flop tariff policy, we are seeing renewed foreign inflows into markets which are also driving the indices higher.
On the technical front, Nifty 50 closed above 24100 levels, indicating strong near-term bullishness. On the upside, expect 24200 to act as an immediate resistance zone while 24000 acts as immediate support on the downside
