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Sensex Prediction for Thursday, April 16: Indian equity benchmark indices staged a massive recovery on Wednesday, with the Sensex surging over 1 per cent as hopes of renewed diplomatic engagement between the US and Iran and crude oil trading below the USD 100-a-barrel level bolstered investor sentiment.
As the markets head into Thursday’s trading session, analysts suggest that while the primary trend is bullish, investors should brace for consolidation after Wednesday’s massive gap-up.
Brent crude, the global oil benchmark, was trading at USD 95.74 per barrel, up by 1.4 per cent, providing much-needed relief to the inflation-sensitive Indian market.
The rally was primarily fuelled by US President Donald Trump’s comments that the war with Iran is “close to over,” asserting that if he pulled up stakes right now, it would take Tehran 20 years to rebuild the country. “I think it’s close to over, yeah. I view it as very close to being over,” Trump told Fox News in an interview that will be telecast later Wednesday.
As per a US media report on Tuesday, Trump said that a second round of talks with Iran could be held in Islamabad “over the next two days”.
Sector-wise, Tailor stated the rally remained broad-based, led by Information Technology, Capital Goods and Consumer Durables, followed by strength in Auto, Power and Realty stocks.
“Banking, Financial Services and Metals also traded firmly in the green, while Healthcare and FMCG posted steady gains, indicating widespread participation across sectors,” he added.
Sensex Prediction for Thursday, April 16 by experts
Analysts expect the bullish momentum to carry into Thursday’s session, albeit with some consolidation near key resistance levels.
Sensex Prediction for Thursday, April 16 by Hitesh Tailor
Hitesh Tailor, Technical Research Analyst at Choice Equity Broking Private Limited noted the index, from a technical standpoint, continues to exhibit a strong uptrend with higher highs and higher lows, indicating sustained bullish momentum.
Key technical levels suggest that support is placed in the 77,200–77,400 zone, which is likely to act as a demand area on dips, while resistance is seen around 78,800–79,000, where upside may face supply pressure, he highlighted.
“The near-term outlook remains positive, supported by strong momentum; however, after a sharp gap-up move, some consolidation or volatility may persist, especially amid ongoing geopolitical developments,” Tailor concluded.
Sensex Prediction for Thursday, April 16 by Vipin Dixena
Echoing similar sentiments, SEBI-registered analyst Vipin Dixena highlighted that while the momentum is strong, the Relative Strength Index (RSI) is slightly stretched in the near term.
Dixena, said, “SENSEX is showing a strong recovery structure with higher highs and higher lows and is currently consolidating just below resistance.”
Immediate support is placed at 77,800, while resistance is placed at 78,600. RSI is holding in the 60–70 zone, suggesting bullish momentum, though slightly stretched in the near term, he added.
“Bias is mild bullish with buy on dips till 77,600 holds. Improving sentiment supported by easing geopolitical tensions is aiding risk-on mood, but markets remain sensitive to any negative headlines,” the analyst concluded.
Sectoral indices on Wednesday
The BSE SmallCap Select index jumped 2.62 per cent and MidCap Select index climbed 2.55 per cent.
Services jumped 3.30 per cent, Focused IT (3.09 per cent), industrials (2.90 per cent), power (2.87 per cent), Consumer Durables (2.84 per cent), IT (2.78 per cent), Capital Goods (2.54 per cent) and Utilities (2.52 per cent).
A total of 3,585 stocks advanced while 802 declined and 126 remained unchanged on the BSE.
Stock markets were closed on Tuesday on account of Dr Baba Saheb Ambedkar Jayanti.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,983.18 crore on Monday after a day’s breather, according to exchange data. Domestic Institutional Investors (DIIs) bought stocks worth Rs 2,432.30 crore.
Meanwhile, rupee traded marginally stronger near 93.36, supported by improving sentiment after the second round of US–Iran talks, which has led to a cooling in crude oil prices over the past two sessions.
On Monday, the Sensex tumbled 702.68 points or 0.91 per cent to settle at 76,847.57. The Nifty plunged 207.95 points or 0.86 per cent to end at 23,842.65.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
