The Indian stock market is taking a pause today, April 18, 2025, as the major indices, Sensex and Nifty 50, observe a holiday for Good Friday. However, on the previous trading day, both indices recorded impressive gains, marking a remarkable four-day upward trend. This surge was largely driven by renewed interest from foreign investors, spurred by optimistic expectations regarding trade discussions between the United States and Japan aimed at resolving reciprocal tariffs.

Market Performance Overview

On Thursday, the 30-share BSE benchmark, Sensex, surged by 1,508.91 points, closing at an impressive 78,553.20. It reached an intraday peak of 78,616.77, reflecting a 2.04% rise. Meanwhile, the Nifty 50 index also experienced a significant jump, gaining 414.45 points to reach 23,851.65, marking a 1.77% increase.

• Sensex Performance:

  • Closed at 78,553.20
  • Peak of 78,616.77
  • Gain of 1,508.91 points (1.96%)
• Nifty 50 Performance:
  • Closed at 23,851.65
  • Gain of 414.45 points (1.77%)

Investor Sentiment and Market Drivers

According to Vinod Nair, Head of Research at Geojit Investments Limited, the rally in large-cap stocks was primarily driven by the financial sector, with investors anticipating improved margins due to changes in savings deposit interest rates. The resurgence of foreign institutional investors (FIIs) has also added to the positive market sentiment, although the sustainability of this trend remains uncertain.

The optimism in the domestic market is bolstered by expectations of fruitful outcomes from US-India trade negotiations and only minor disruptions arising from ongoing US-China trade tensions. Additionally, easing inflation rates are contributing to a favorable market atmosphere.

Technical Analysis and Future Outlook

The recent momentum in the Nifty 50 has shown signs of a "V" shaped recovery, indicating bullish sentiment. A positive crossover between the 20-day and 50-day Simple Moving Averages (SMAs) reinforces the short-term trend reversal. The index’s strong position above the 100-day SMA (23,395) further suggests bullish potential, with targets set between 24,000 and 24,300. Key support levels are identified around 23,500-23,200, where minor corrections may present buying opportunities.

Stock Recommendations

Investors are keen to monitor specific stocks that are showing bullish trends:

• SBI Life Insurance Company Ltd (CMP: ₹1,607):

  • Broke through significant resistance levels of ₹1,550-1,580.
  • Positioned above all major SMAs, indicating strong market momentum.
  • Expected upside: ₹1,665-1,770; downside support: ₹1,570-1,550.

• Indian Bank (CMP: ₹573):

  • Recently broke out of a five-month supply zone of 560.
  • Strong volume signals increased participation.
  • Expected upside: ₹605-630; downside support: ₹555-540.
• Adani Ports and Special Economic Zone Ltd (CMP: ₹1,260):
  • Confirmed a "triangular" breakout at 1,200.
  • Positive volume trends and bullish SMA crossovers indicate upward momentum.
  • Expected upside: ₹1,355-1,450; downside support: ₹1,220-1,200.

Conclusion

With a strong performance leading into the holiday, investors remain optimistic about future market movements. Keep an eye on the ongoing developments in trade negotiations and economic indicators that could influence market trends moving forward.