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NIFTY50 forms a indecision candle, IT stocks remain under pressure

NIFTY50 forms a indecision candle, IT stocks remain under pressure

Upstox

2 min read • Updated: April 16, 2024, 5:34 PM

Summary

The NIFTY50 index breached its 50-DMA on a closing basis, but formed a doji pattern near its support. Going forward, traders can keep a close eye on the high and low of the doji candle. A close above or below the doji will give traders further directional clues.

NIFTY50 forms a indecision candle, IT stocks remain under pressure

Markets extended their losing streak for the third consecutive day and closed lower on Tuesday. Higher than expected U.S. retail sales data and ongoing geopolitical tensions dampened investor sentiment. The NIFTY50 ended the day 0.5% lower at 22,147 while the SENSEX fell 0.6% to close at 72,943.

Top gainer and loser in NIFTY50: Eicher Motors (+3.0%) and Infosys (+3.6%)
The broader markets ended mixed but outperformed the benchmark indices. The NIFTY Midcap 100 index closed flat, while the Smallcap 100 advanced 0.7%.
Top gainer and loser in NIFTY Midcap 100: Patanjali Foods (+4.9%) and Indus Towers (-0.3%)
Top gainer in NIFTY Smallcap 100: Exide Industries (+15.0%)

The NIFTY50 index opened below its 50-day moving average (DMA) and traded in a narrow range with sharp bouts of intraday volatility. The index breached the 50-DMA on a closing basis, but formed a doji candlestick pattern near its support.

A doji is a neutral candlestick pattern that indicates investor indecision. Going forward, traders can keep a close eye on the high and low of the doji candle. A close above or below the doji will give traders further directional clues.

Key highlights of the day:

📱Vodafone Idea's(-1.9%) upcoming ₹18,000 FPO got a thumbs up from the government after the Finance Secretary said in an interview that maintaining competition with multiple players is the government's main objective.

🛢️IOC (+1.5%) was in focus after it signed an agreement with Gujarat Gas to expand services and products to its customers.

⭐Cipla Health, the subsidiary of Cipla (-0.1%) purchased the distribution and marketing business of cosmetics and personal care brand Ivia Beaute for ₹130 crore.