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Stock market recap: Indian equity benchmarks ended the session higher on Monday 4 May, with the Nifty 50 rising 121.75 points (0.51%) to close at 24,119.30. The Sensex gained 355.90 points (0.46%) to finish at 77,269.40. Broad-based buying underpinned the advance, with a healthy advance-decline ratio of 2,140:1,187, indicating strong participation from mid- and small-cap stocks.
The session was influenced by vote counting in five state elections, including West Bengal, Assam, Tamil Nadu, Kerala and Puducherry. Early trends showing a strong performance by the ruling central alliance in key states lifted sentiment during the day.
Sectorally, realty led gains with a 2.41% rise, followed by metals and pharma. Information technology, however, lagged, falling 0.95%.
Global cues capped upside momentum, with Brent crude hovering near $109 and geopolitical tensions in West Asia weighing on sentiment and limiting broader directional strength.
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Indian equities closed on a firm note, with the Nifty 50 gaining 0.51% (+121.75 points) to settle at 24,119.30, supported by broad-based buying despite intraday volatility. The index moved in a range of 24,004–24,290, indicating mild profit-booking at higher levels but sustained resilience above the 24,000 mark. Market breadth remained positive, with 2,140 stocks advancing versus 1,187 declining and 105 unchanged, reflecting underlying strength in the broader market.
Sectorally, realty (+2.4%), metals (+1.1%), healthcare (+1.0%) and financial services (+0.8%) led gains, while IT (-0.95%) and media lagged, capping upside. PSU and private banks also saw marginal pressure, pointing to selective rotation within financials. Mid- and small-cap segments outperformed, supported by steady domestic flows.
On the technical front, the Nifty 50 continues to show a tentative recovery after its recent corrective phase, with a pattern of higher lows suggesting emerging buying interest at lower levels. However, the index remains in a broader consolidation range and is yet to confirm a decisive trend reversal. It is currently hovering around its 21- and 50-day moving averages, indicating near-term equilibrium between bulls and bears, while remaining below its 100-week moving average, reflecting a cautious medium-term bias.
Momentum indicators remain mixed. The RSI is gradually edging higher near the neutral 52 level, signalling improving but non-committal strength. The MACD remains in positive territory with a recent bullish crossover, though a flattening histogram suggests moderating upward momentum.
According to O’Neil’s methodology of market direction, the Indian equity market has transitioned to a “Confirmed Uptrend” from a “Rally Attempt”.
The index is approaching a key near-term support zone around 23,800, with the next cushion placed in the 23,500–23,550 range, aligned with the 21-DMA. On the upside, initial resistance is seen at 24,250–24,300, while a stronger supply zone emerges in the 24,800–25,000 band, where multiple key moving averages converge, potentially capping near-term gains.
Nifty Bank opened marginally higher and traded in a range through the session. It opened at 54,937, touched an intraday high of 55,602, and slipped to a low of 54,723 before closing nearly flat at 54,878 (+0.03%). The price action indicates mild profit-booking at higher levels, with the index struggling to sustain above near-term resistance zones. Despite intraday volatility, it held above immediate support, pointing to selective buying at lower levels. However, its inability to reclaim key moving averages reflects underlying weakness and cautious sentiment.
From a technical perspective, the RSI is hovering around 45, signalling neutral to slightly weak momentum as it remains below the midline of 50. The MACD shows signs of fading upside momentum, with a flattening histogram and a potential bearish crossover as the signal line converges. The index also continues to trade below key medium-term moving averages, reinforcing a cautious technical bias.
On the levels front, immediate support is placed at 54,500–54,000, aligned with recent swing lows and demand zones. A break below this range could open the way towards 53,000. On the upside, resistance is seen at 55,500–56,000, in line with the 21- and 50-day moving averages. A decisive breakout above this zone could trigger short covering and extend recovery. Overall, the index is likely to remain range-bound with a mild negative bias unless it reclaims resistance with strong volumes and broader participation.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
MarketSmith India breaks through the market clutter to bring actionable investment ideas into focus. Our founder and legendary investor, William J. O'Neil, studied these trends and formulated the pathbreaking methodology, the CAN SLIM®. For over five decades now, MarketSmith has been successfully delivering great investment ideas based on its investment philosophy.
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