Angel One Advisor Recommends Buying Shares of Eternal and Shipping Corporation

Market Sentiment Improves as US-Iran Tensions Ease, Oil Prices Fall

The domestic benchmark indices, Nifty 50 and BSE Sensex, extended their rally to open higher on Thursday, April 16, driven by improving sentiment following hopes of a potential peace deal between the US and Iran, which pushed oil prices lower. The Nifty 50 rose 0.60% to 24,375.55, while the Sensex gained 0.64% to 78,613.37 as of 9:18 IST, with all 16 major sectoral indices trading in the green. Broader markets also saw strong participation, with small-cap and mid-cap indices climbing around 1.1% each.

Asian markets mirrored the positive trend, rising about 1.2%. The rally follows Wednesday's sharp gains, when both indices advanced 1.6% to hit a one-month high after indications that US-Iran talks could resume in Pakistan. Meanwhile, Brent crude slipped below $95 per barrel amid reports that Iran may allow shipping through the Strait of Hormuz, easing supply concerns. Adding to the optimism, US President Donald Trump indicated that Israel and Lebanon would hold talks, signaling further de-escalation in Middle East tensions.

Nifty 50 Outlook

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Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One, notes that the Nifty 50 opened sharply higher above the previous week's peak, maintaining a positive bias throughout the session and consolidating at elevated levels. The index closed with a gain of approximately 1.63%, ending marginally below the 24,250 mark, reflecting sustained bullish momentum.

The bulls have staged an impressive recovery over the past fortnight, with Nifty 50 rallying over 2,000 points from recent lows within a span of just 15 days. This sharp upmove has retraced nearly 50% of the decline from the February swing high, reflecting a strong resurgence in market sentiment. Notably, the rally has been accompanied by the formation of multiple bullish gaps, underscoring the strength of the upward momentum.

Technical Analysis

From a technical perspective, Nifty 50 has now entered a crucial resistance zone in the 24,400-24,800 range. This zone represents a confluence of important technical indicators, including the 50-day and 89-day EMAs, along with the 61.8% Fibonacci retracement of the recent correction. As such, it is expected to act as a significant hurdle. A sustained breakout above this band would be essential for the continuation of the uptrend. In the near term, some consolidation or a brief pause around these levels would be a healthy development before any decisive move higher.

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On the downside, the bullish gap formed in the 24,000-23,900 zone is likely to provide immediate support. Broader markets continue to exhibit strength, with the Nifty Midcap Select index already surpassing its 61.8% retracement level and trading above key moving averages, indicating a potential resumption of the primary uptrend.

Stock Recommendations

Osho Krishan of Angel One recommends two stocks for Thursday: Eternal Ltd and Shipping Corporation of India Ltd.

Eternal Ltd has undergone a notable recovery over the past few weeks, with prices retracing toward the 20 and 50-DEMA and momentum indicators turning bullish. Recent price action suggests stabilization at lower levels, indicating emerging buying interest on the daily chart.

Shipping Corporation of India has been trading firmly above its key EMAs, post the recent correction from highs of 280 subzone and tested 200 DSMA. The prevailing technical structure remains constructive, indicating potential for continued upward momentum.