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NIFTY50 forms bearish engulfing candle, slips below 22,500

NIFTY50 forms bearish engulfing candle, slips below 22,500

Upstox

3 min read • Updated: May 3, 2024, 5:43 PM

Summary

On the weekly and daily charts, the NIFTY50 is giving mixed signals. On the weekly chart, the index has formed a doji candle, indicating investor indecision, while on the daily chart, a bearish engulfing candle has formed.

NIFTY50 forms bearish engulfing candle, slips below 22,500

Despite a positive start, the markets witnessed significant volatility and fell more than 1% from the opening levels. Profit booking in the index heavyweights ahead of the weekend and release of U.S. non-farm payrolls data led to a sharp fall in the frontline indices. The NIFTY50 fell over 1% and closed at 22,475, while the SENSEX lost 0.9% and closed at 73,878.

Top gainer and loser in NIFTY50: Coal India (+4.7%) and Larsen & Toubro (-2.7%)
The broader markets were able to outperform the benchmark indices, but ended the day lower. The NIFTY Midcap 100 index fell 0.3%, while the Smallcap 100 index lost 0.4%.
Top gainer and loser in NIFTY Midcap 100: Prestige (+4.2%) and HDFC AMC (-0.8%)
Top gainer and loser in NIFTY Smallcap 100: Gujarat Mineral Development (+6.7%) and Welspun Living (-1.0%)

Going forward, the immediate resistance for the NIFTY50 is at 22,800, while the support is at 20-DMA, which is placed between 22,400 and 22,450 zone. A close below 20-DMA will signal further signal weakness.

Key highlights of the day:

🔥Coal India's (+4.7%) net profit increased by 26% YoY to ₹8,682 crore due to higher sales and cost efficiencies. However, revenue declined 2% YoY to ₹37,410 crore.

💰Bajaj Finance (+0.6%) was in focus after the RBI removed the restrictions on its two products eCOM and online digital Insta EMI Card.

🚒Bharat Forge declined nearly 2% after North American Class 8 truck orders fell to a nine-month low in April.

🖥️Coforge slipped over 10% despite company’s net profit nearly doubled to ₹223 crore. However, the acquisition of Cigniti Technologies and lack of growth guidance for FY25 dented the sentiment.