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After The Bell: Sensex back above 48,000 in a volatile session; what should investors do on Friday?

In the absence of a fresh positive development, a bullish momentum was unlikely for the time being and volatility will persist; 14,200 remains a key support on the downside, say experts.

April 22, 2021 / 04:50 PM IST

India's benchmark indices recouped losses to close in the green on April 22, snapping a two-day losing streak. Bulls pushed the S&P BSE Sensex 374 points higher to 48,080, while the Nifty50 rose 109 points to close at 14,406.

Sectorally, buying was seen in banks, finance, metals, realty and oil & gas,  while profit booking was seen in consumer durables, FMCG, IT, and consumer discretionary space.

The S&P BSE midcap index closed with gains of 0.28 percent, while the S&P BSE smallcap index was up 0.59 percent.

The market recovered on the back of positive global cues and developments on the ongoing vaccination drive.

“Market remained volatile today, swinging between red and green. There was some recovery seen in the financial sector today, which led to markets closing half a percent higher. However, there is less stability and resilience of the market is tested again around 14,200 levels around which it is regularly bouncing back,” Mohit Nigam, Head, PMS & advisory, Hem Securities told Moneycontrol.

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“There are hopes that the increase in restrictions might help slow down the ever-alarming COVID numbers in a few weeks, which we believe has become the most important trigger for the markets to move meaningfully on the positive side,” he said.

In the absence of a fresh positive development, a bullish momentum was unlikely for the time being and volatility was likely to persist; 14,200 on the downside remains key support, Nigam said.

Here is what experts suggest investors should do on April 23:

Vinod Nair, Head of Research, Geojit Financial Services

Amid increasing COVID-19 cases, the domestic market recovered from its early losses backed by positive cues from global markets. The market has been going through a correction phase following an increase in COVID cases, in spite of the optimism due to vaccination drives.

Though earnings outcome is expected to have stock-specific movement in the coming days, broader movement in the market will depend on fall in COVID cases.

Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services Limited

Technically, the Nifty formed a Bullish candle on a daily scale even though it breached its previous day’s low, the bulls were in charge for the most part of the day.

Now, it has to decisively hold above 14,400 to witness a bounce towards 14,600 and 14,700, while on the downside, support exists at 14,250 and 14,150 zones.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The markets failed to break the day's low of 14,130 and zoomed up to close above 14,400. Unless we do not break the day's low and sustain below it for a couple of hours, the markets will not enter a bear phase.

If it does break, the index could drift down to 13,800. The upside is capped at 14,550.

Rohit Singre, Senior Technical Analyst at LKP Securities

The index showed a good pull back from its strong support and managed to close the day on a positive note above 14,400, with gains of nearly one percent, forming a bullish candle on the daily chart.

On the higher side, the index has a stiff hurdle at the 14,450-14,500 zone. If it manages to sustain above 14,500, then we may see the extension in the current pullback towards the 14,700-14,900 in the near term.

If the Nifty fails to hold above the 14,500 zone, then profit booking can be seen from the higher-end towards the immediate support zone of 14,350-14,250 zone.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.

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