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Markets in a healthy consolidation after 3 weeks of recovery

ICICIdirect Research 24 Apr 2026 DISCLAIMER

Geopolitical tensions and rising crude oil prices have triggered a cautious sentiment in the equity markets. After a sharp three-week recovery, Indian benchmarks took a breather, with the Nifty settling at 23,900 (down 1.9%).
The broader market showed resilience, as mid-caps dipped only 1% while small-caps remained flat. On the sectoral front, IT saw the steepest decline at 10%, while the Energy and Pharma sectors managed to outperform.

Key highlights:

  • Following an 11% rally over three weeks, the index is currently in a phase of healthy consolidation. With the weekly stochastic oscillator in overbought territory, a short-term consolidation cannot be ruled out.

What we expect:

  • The index to consolidate within the 24,500–23,400 range as it navigates geopolitical volatility coupled with the ongoing earnings season.
  • We believe, consolidation would strengthen the market's foundation for the next leg of up move. Thereby, we recommend accumulating high-quality stocks on dips backed by strong earnings

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