It was a volatile Tuesday, as S&P BSE Sensex fell more than 700 points from the high to close below 48,000, while the Nifty50 broke below 14,300 on a closing basis.
The Sensex fell 243 points to 47,705, while the Nifty closed 63 points lower at 14,296.
Sectorally, buying was seen in pharma, auto, capital goods and telecom space, while selling was recorded in IT, FMCG, finance and banks.
"Indian markets witnessed a bounce-back in its opening trade, however, failed to hold onto early gains due to weak global cues and the possibility of a stricter lockdown in Maharashtra,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
“Despite the vaccine drive kindling hopes of recovery, the trend in the market will depend on positive developments like decreasing COVID cases and lifting of restrictions. IT and FMCG were the sectoral laggards, while mid and smallcaps outperformed,” he said.
Mid and smallcaps rose 0.49 percent each in a volatile trading session.
Indian market will remain shut on April 21 on account of Ram Navami.
Here is what experts suggest investors should do on April 22:
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
We are of the view that currently the Nifty/Sensex are hovering in the range of 14,600 to 14,400/47,500-49,000 price range and the texture of the pattern suggests narrow range activity likely to continue in the near future.
Technically, the index has formed a lower top formation, which is broadly negative for the market. The intraday chart suggests correction wave is likely to continue if the Nifty keeps below 14,400 and the Sensex 48,100.
The correction wave will continue up to 14,200-14,130 for the Nifty and 47,350-47,000 for the Sensex. On the flip side, if the Nifty breaks above 14,400 and the Sensex above 48,100, then we can expect a quick pullback rally till 14,475-14,525/48,300-48,500.
Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services Limited
Technically, the index formed a Bearish Belt Hold sort of candle on the daily scale and the day was predominantly taken over by the bears.
Now, the Nifty has to cross and hold above 14,400 zones to witness a bounce towards 14,600 and 14,700, while on the downside, support exists at 14,200 and 14,100 zones.
Ashis Biswas, Head, Technical Research, CapitalVia Global Research Limited
The market continued to witness a lack of momentum and the Nifty stayed in the 14,200-14,500 range. As of now, the short-term technical condition of the market appears like a sideways correction is in the process.
While it is subject to further price action, it is prudent to wait for a decisive break out of the range and technical factors to improve before attempting to enter from a short to medium-term perspective.
Rohit Singre, Senior Technical Analyst at LKP Securities
The Nifty opened the day with a strong gap but profit booking from highs saw the index close on a negative note at 14,294, with a loss of half percent, and formed a strong bearish candle on the daily chart.
The index has a base around 14,200-14,250 zone and if it manages to sustain it, some pullback is possible. If not, then we may see the next leg of the move towards the 14,000-mark, which is another strong support on the downside.
On the higher side, 14,400-14,500 will be a stiff hurdle that can be considered as initial profit booking levels.
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