Nifty 50 Index Falls Below 24,000: Key Levels to Monitor Ahead of Next Week's Trading

Indian Stock Indices Finish Lower Amid Rising Crude Oil Prices and Weak Global Signals

On Thursday, 30 April, the Benchmark Indian stock indices finished lower, with both the Sensex and Nifty 50 declining by nearly 1% amid rising crude oil prices, weak global signals, and ongoing foreign fund withdrawals that weighed on investor sentiment.

The Nifty 50 declined by 180.10 points, or 0.74%, to end at 23,997.55, ending slightly below the significant 24,000 threshold. At the same time, the Sensex dropped 582.86 points, or 0.75%, to close at 76,913.50. During the intra-day trading, the 30-pack index had plummeted by as much as 1,237.5 points before recouping some of its losses in the latter part of the session.

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The broader markets excelled, with the BSE Smallcap index rising by 2% and the Midcap index gaining 0.3%. The market fluctuations this week were primarily driven by changes in crude oil prices. Brent crude momentarily soared to nearly four-year highs at $120 per barrel due to geopolitical issues, before settling at approximately $110.4 for July delivery. This increase has raised concerns about inflationary pressures and the fiscal outlook for India, a significant oil importer.

Concurrently, the rupee continued to weaken, nearing the 95-per-dollar mark. The Indian stock market is closed today (Friday, 1 May) on Maharashtra Day. Trading will resume on Monday, 4 May.

Key levels to watch out for include the Nifty 50's immediate support in the 23,500–23,400 zone, while resistance is seen in the 24,350–24,600 range. According to SBI Securities, the 24,300–24,350 band remains a key resistance area for the Nifty 50. A sustained move above 24,350 could open the door for further upside towards 24,500 and 24,700. On the downside, the 23,800–23,750 zone is seen as crucial support, and a break below this range may lead to further declines towards 23,600 and 23,400 levels.

Nilesh Jain, VP and Head of Technical and Derivative Research at Centrum Finverse Ltd, noted that the immediate resistance is placed near the 50-day moving average around 24,140. A decisive breakout above this level could push the index higher towards 24,500. Conversely, a breach below 23,800 may drag the Nifty 50 towards 23,500. He also highlighted that the volatility index declined by nearly 8% during the week to around 18, and any further cooling in volatility could support bullish momentum in the market.

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