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NIFTY50 rebounds from day’s low, banks and metals lead gains

NIFTY50 rebounds from day’s low, banks and metals lead gains

Upstox

3 min read • Updated: April 19, 2024, 5:25 PM

Summary

The NIFTY50 formed a bullish piercing pattern on the daily chart, finding support near the 21,700 zone. Experts believe the immediate resistance for the index is at 22,300. A close above this level could be the start of a rally towards the 22,600 level.

NIFTY50 rebounds from day’s low, banks and metals lead gains

Amid weak global cues, markets started the day on a negative note but quickly recovered from the day's low. The NIFTY50 broke its four-day losing streak and staged a strong recovery of over 1.6% from the day's low. The index regained the 22,000 level on a closing basis and closed just below its 50 DMA.

Top gainer and loser in NIFTY50: Bajaj Finance (+3.1%) and Bajaj-Auto (-2.4%)
The broader markets underperformed the benchmark indices. The NIFTY Midcap 100 index fell 0.6% and the Smallcap 100 declined 0.1%.
Top gainer and loser in NIFTY Midcap 100: Escorts Kubota (+2.7%) and Tata Technologies (-0.7%)
Top gainer and loser in NIFTY Smallcap 100: Ramkrishna Forgings (+5.9%) and Indian Overseas Bank (-0.7%)

The NIFTY50 has fallen over 4% from its recent high over the past five days, resulting in the formation of a bullish piercing candle on the daily chart. This two candlestick pattern typically occurs after a down trend and is seen as a possible reversal, subject to confirmation.

This pattern begins with the market opening at a lower level on the second day, followed by a significant rebound that results in a closing price above the midpoint of the previous day's trading range. Such a move indicates strong buying interest. To validate this pattern as a reversal signal, traders monitor the following day's close; a close higher than the close of the bullish piercing candle serves as confirmation of the trend reversal.

Key highlights of the day:

🖥️Infosys (-0.5%) was in focus after the IT major’s revenue declined 2.3% QoQ to ₹37,923 crore, amid weakness in discretionary spending. The company’s FY25 revenue guidance of 1%-3% was also below Street estimates.

📲Dixon Technologies' (+0.1%) subsidiary Padget Electronics signed an agreement with Longcheer Mobile India to manufacture and distribute smartphones for global brands.

🚀Ramakrishna Forgings jumped 5% after the company signed an agreement with USA’s largest EV passenger vehicle producer for supply of power train components.