Sensex Down 315 Points, Nifty at 24,246; Tomorrow Nifty Prediction

Market Wrap | April 24: Nifty Slips Below 24,300, Sensex Drops 315 Points — Will Consolidation Continue?

Indian stock markets witnessed a day of subdued activity on April 24, as benchmark indices ended lower amid weak global cues and monthly derivatives expiry pressures.

The Nifty 50 slipped below the psychological 24,300 level, closing the day at 24,246.70, down 82.25 points or 0.34%. The Sensex also ended in the red, losing 315.06 points or 0.39% to settle at 79,801.43.

This comes after a period of strong performance by domestic markets, where key indices hit record highs earlier this month.

As expected, some cooling off and profit booking is being seen, especially ahead of earnings announcements and in the run-up to major economic data releases.

Market Breadth and Key Stats

Market breadth on the BSE was mixed, reflecting a lack of clear directional bias among investors. Out of the total actively traded stocks:

• 1,869 stocks advanced
• 1,921 declined
• 144 remained unchanged

Despite the benchmark indices ending lower, broader market indices outperformed. Both the BSE Midcap and Smallcap indices closed flat to marginally positive, showing that investor interest in non-frontline stocks remains intact.

This suggests a stock-specific approach is still in play, with participants rotating capital into mid-tier and emerging companies.

Sectoral Overview: Defensive Bets Rise, FMCG & Realty Under Pressure

Among sectoral indices, the pharmaceuticals and metal sectors were the day’s top performers, each posting gains of around 1%, as investors looked for defensive and value-oriented plays amid the consolidation.

With global uncertainty and market volatility, pharma stocks are often viewed as relatively safer bets due to their consistent earnings and essential nature.

The metal sector gained ground likely due to improved pricing outlooks, China stimulus expectations, and firm commodity prices in global markets. This, coupled with low valuations in some key players, led to buying interest.

On the flip side, FMCG and realty stocks faced the most selling pressure. The FMCG index dropped nearly 1%, reflecting concerns around rural demand recovery and margin pressures amid sticky input costs.

The realty index also declined by 1%, as investors booked profits after a recent sharp rally driven by robust housing demand and pre-election optimism.

Top Gainers and Losers: Mixed Sentiment

On the Nifty 50:

• Top Gainers included IndusInd Bank, UltraTech Cement, Grasim Industries, Tata Motors, and Dr. Reddy’s Laboratories. These stocks rose on the back of either strong earnings visibility, sectoral rotation, or technical strength.
• Top Losers were HUL, Bharti Airtel, Eicher Motors, ICICI Bank, and Eternal, which saw declines due to a mix of valuation concerns, profit-taking, and weaker-than-expected quarterly updates.

Analyst Views: What the Experts Say

Aditya Gaggar, Director at Progressive Shares, observed that the session closed on a lackluster note, primarily due to the monthly derivatives expiry. According to him, the Nifty moved within a narrow trading band of 24,120 to 24,360, suggesting range-bound consolidation.

He noted that a decisive breakout on either side of this range will likely determine the short-term trajectory of the markets.

“The mid and smallcap segments once again outperformed the benchmarks, which is a positive indicator of broader market strength,” Gaggar added.

Ajit Mishra, SVP – Technical Research at Religare Broking, emphasized the market’s limited intraday movement.

He highlighted that the Nifty traded mostly sideways after an initial decline, signaling ongoing consolidation following recent highs.

He advised investors to maintain a buy-on-dips strategy, especially in quality names, as the broader setup remains positive.

Mishra also expects banking and financial stocks—which have seen significant gains in recent months—to undergo a short period of consolidation.

“Sectors such as public sector enterprises (PSEs), metals, and pharmaceuticals appear poised for further upside, backed by improving fundamentals and attractive valuations,” Mishra said.

Technical Outlook: Waiting for a Breakout

Technically, the Nifty’s current trading range between 24,120 and 24,360 remains crucial. A move above 24,360 could open the door for fresh all-time highs, while a breach below 24,120 may invite short-term weakness and a potential test of 23,950–24,000 levels.

The Relative Strength Index (RSI) on the Nifty is hovering near the neutral zone, suggesting the index is neither overbought nor oversold, and reinforcing the narrative of a sideways move in the short term. Volume data also indicates declining participation, often typical of consolidation phases.

What Should Investors Do Now?

For traders and short-term investors, range-bound strategies such as buying near support levels and selling near resistance could work well until a clear breakout emerges.

For medium- to long-term investors:

• Focus on quality stocks with strong earnings visibility.
• Use any dip to accumulate names in outperforming sectors like pharma, metals, and select PSEs.
• Be cautious with sectors showing fatigue or overbought signals such as FMCG and realty.

Volatility may also rise in the near term due to:

• Quarterly earnings results
• FII flows (Foreign Institutional Investor activity)
• Global market movements, including US Fed guidance and crude oil prices
• Political developments as India heads closer to general elections

Final Thoughts

While the Indian stock market has enjoyed a robust rally in recent months, the current phase appears to be one of healthy consolidation. With macroeconomic fundamentals still intact, and corporate earnings expected to hold steady, the underlying tone remains positive.

However, investors should be selective and disciplined in their approach. Rotating into sectors with relative strength and keeping an eye on technical breakout zones will be key to navigating the coming sessions effectively.

As always, diversification, patience, and a focus on long-term value creation will remain your best tools in a market showing signs of digestion after a strong run.