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NIFTY50 plunges 2% in two days, eyes support at 50-DMA

NIFTY50 plunges 2% in two days, eyes support at 50-DMA

Upstox

2 min read • Updated: April 15, 2024, 7:07 PM

Summary

Based on options data, the NIFTY50 shows significant call open interest at the 22,700 and 22,50 strikes, indicating that this zone will act as immediate resistance.

NIFTY50 plunges 2% in two days, eyes support at 50-DMA

Markets extended losses for the second consecutive day. Renewed geopolitical tensions between Israel and Iran led to profit-taking at higher levels. The NIFTY50 fell over 1% to close at 22,272 while the SENSEX lost 1.1% to close at 73,399.

Top gainer and loser in NIFTY50: ONGC (+5.8%) and Shriram Finance (-3.1%)
The broader markets also faced selling pressure and ended deep in red. The NIFTY Midcap 100 index slipped 1.5% and the Smallcap 100 index lost 1.7%.
Top gainer and loser in NIFTY Midcap 100: Indus Towers (+2.7%) and Hindustan Petroleum (-2.1%)
Top gainer and loser in NIFTY Smallcap 100: Exide Industries (+2.6%) and Tejas Networks (-2.2%)

After an initial bounce, the NIFTY50 came under selling pressure at higher levels, resulting in the formation of a negative candle on the daily chart. The index closed below its key 20-day moving average support range of 22,280-22,300 and also broke a key swing low at 22,303 on a closing basis. Going forward, the index has immediate support in the 22,150-22,200 area, which coincides with its 50-day moving average. The resistance remains at 22,700-mark.

Key highlights of the day:

⭐Gas distribution companies were in focus after the BJP's election manifesto promised to expand the city gas distribution network from the current 6% to 15% by 2030. The shares of IGL and MGL rose 2% respectively.

💊Aurobindo Pharma fell nearly 2% after the US FDA cited problems at its Eugia facility during an inspection. The US FDA cited concerns about contamination, data accuracy and control procedures. However, the stock recovered most of its losses to close 0.2% lower.