According to Bajaj Broking Research, Indian benchmark indices snapped their three-day gaining streak and ended lower, with the Nifty slipping below the 24,400 mark on 22nd April. The decline was driven by uncertainty surrounding geopolitical developments which lead to a rise in crude oil prices. Depreciation in the rupee further added to the negative sentiment. Additionally, the ongoing earnings season is expected to keep volatility elevated in the near term. At close, the Sensex fell by 756.84 points (0.95%) to settle at 78,516.49, while the Nifty declined 198.50 points (0.81%) to close at 24,378.10.

On the sectoral front, weakness was led by Nifty IT which was down by 3.9%. Private Banks, Financial Services, and Auto also closed in negative territory, while selective strength was seen in Nifty Chemicals, Realty, and Oil & Gas. The broader market, however, outperformed the benchmarks, with the Nifty Midcap index rising 0.19% and the Nifty Smallcap index gaining 1.13%, indicating continued stock-specific buying interest.

Nifty Outlook 

The index formed a bearish candlestick pattern which remained contained inside previous session price range signaling consolidation amid profit booking after recent strong up move. Overall bias continues to remain positive above last Wednesday gap up area of 23,850-24,100. Index is expected to maintain positive bias and gradually head towards 24,700-24,800 levels being the confluence of the 200 days EMA and the 61.8% retracement of the entire decline 26,373 to 22,183. Volatility is expected to remain high on account of the geopolitical tension and volatile crude oil prices. Short-term support is positioned around 23,600–23,500 range being the confluence of last week low and 38.2% retracement of the last 3 weeks pullback (22,183-24,601). Forming higher high and higher low in weekly chart will keep the current pullback trend intact.

Bank Nifty Outlook

The index formed a high wave candle which remained contained inside previous session price range signaling consolidation after recent strong up move. Overall bias remain positive above last Wednesday gap up area of 55,600-55,850. Index is expected to maintain positive bias and gradually head towards 57,800 and 58,500 levels being the previous breakdown area and key retracement of previous decline. Volatility is likely to remain high on account of the geopolitical tension and volatile crude oil prices. From a short-term perspective, support is placed in the range of 54,500–54,000 zone, being the confluence of the last week low and 38.2% retracement of the last 3 weeks pullback (49,955-57,456). Forming higher high and higher low in weekly chart will keep the current pullback trend intact.  

Also Read: Sensex Ends 753 Points Higher, Nifty Rallies on Oil Easing

According to Motilal Oswal Financial Services Ltd, Indian markets are expected to consolidate in the near term as investors continue to monitor developments in the US-Iran conflict and the ongoing US blockade of the Strait of Hormuz. While the benchmark indices may remain sideways, the broader market is likely to continue seeing stock- and sector-specific action driven by March quarter earnings and sector specific news flows.

Sectors such as power, transmission, capital goods, renewables, sugar, defence and consumer are likely to remain in focus. On Wednesday, Indian markets opened on a negative note and remained under pressure throughout the session, after the ceasefire deadline expired.

Nifty closed below 24,500 at 24,378 (-0.8%) and snapping its three-day winning streak. The decline was driven by weak global cues, renewed concerns around the West Asia conflict and elevated crude oil prices (remained near $98 per barrel), despite a slight dip. A sharp selloff in IT stocks and profit booking after the recent rally further added to the weakness. India VIX over 6%, reflecting heightened caution amid persistent geopolitical uncertainty.

Despite the weakness in the benchmark indices, the broader market remained resilient. The Midcap100 gained 0.2%, while the Smallcap100 rose 1.1%, showing that investors continued to buy selectively in smaller companies. The IT sector was the biggest drag on the market. The sector is facing multiple challenges, including lower spending by telecom clients, delays in new deals because of uncertainty in the US and weak demand for discretionary projects.

At the same time, the growing use of artificial intelligence is putting pressure on pricing for traditional IT services companies. Recent commentary from IT companies has remained cautious, and results from companies like Infosys and LTM on Thursday will be important in understanding how demand and margins may trend in FY27.

In contrast, the FMCG sector has shown more resilience. Strong quarterly performance from Nestlé has boosted confidence that domestic consumer demand remains steady, which is aiding investor’s interest in the sector. Looking ahead, markets are likely to remain highly sensitive to geopolitical developments and foreign investor activity.

Foreign institutional investors have continued to sell despite occasional market recoveries, and their flows will remain an important factor. The ongoing earnings season will also drive stock-specific movement, with key results due on Thursday from Infosys, Union Bank of India, Cyient and Aditya Birla Sun Life AMC.