[Premium] April Monthly Candles

The Nifty 50 continues to be the strongest index, but this month's tight range below last year's highs reconfirms the need for further consolidation before breaking out.

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Smallcaps closed at their monthly low, still well within the top of March's range. This action remains constructive, but we want to see prices stay above this downtrend line and support at 6,140.

Financial Services, the largest sector of the market, continue to consolidate at the top of last month's range. Again, very constructive.

Commodities broke above the downtrend line from their 2018 highs and 3,550. As long as prices are above that level, the bias remains higher.

IT was the big mover this month, playing catch-up to other leaders like Financial Services that had already broken out. This reaffirms its long-term uptrend and targets 18,660.

Tata Consultancy made a new all-time monthly closing high, driving the IT Index higher. Again, this is some of the rotation we've been waiting for.

Autos remain extremely weak, closing near its lows after failing to break above former support at 9,130. Bias remains lower.

State Bank of India is back at its highs, but not able to break out yet. This will determine the direction of the Nifty PSU Bank Index.

Crude Oil tested resistance near 4,660 and pulled back, reaffirming that it may remain rangebound between 4,000 and 4,660 for the next few months.

USDINR, like the other 3 currency pairs we track, remains a chop-fest with little edge. It's clinging to support, but we need a decisive move one way or another to justify taking a position.

April's theme across the board was corrective in nature. Key areas like Financial Services and Energy were able to correct through time which is extremely constructive, while others chose to correct through price. The key here is that we want to see most of them choose the former route, which remains the case so far.

The long-term bullish thesis in Indian Equities remains firmly intact, but near-term concerns remain.

Stick with the strongest names while the indexes work themselves out.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team