loader2
Login Open ICICI 3-in-1 Account
Text Size
Text to Speech
Color Contrast
Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Market Outlook: Recovery extending for second consecutive week

ICICIdirect Research 17 Apr 2026 DISCLAIMER

Equity benchmark extended gains over second consecutive week tracking buoyant global cues amid development on geopolitical conflicts. Nifty recovered intra-week losses and settled at 24200, up 0.5%. Strong recovery seen in Midcap and Small caps which gained 1.8% and 2.5%, respectively.

Key Highlight: On the rare occurrence of four months negative close where Nifty declined 16%, buying demand emerged from 200 weeks EMA that garnered 10% move in just two weeks.  

What to expect:

Going ahead, we expect index to extend ongoing momentum towards 24800 being placement of 200 weeks EMA. The index has rallied 10% in last two weeks that hauled short term indictors in overbought conditions. Hence, temporary breather at higher levels cannot be ruled out which would make market healthy. Therefore, any dip from hereon should be capitalized as incremental buying opportunity as strong support is placed at 23000.

Our constructive bias is further validated by following observations:

1.Faster pace of retracement followed by higher base above short-term moving average confirms trend reversal that augurs well for next leg of up move
2.In tandem with the Russia/Ukraine conflict, index appears to be mirroring current geopolitical scenario, wherein war induced correction arrested around 11% and subsequent one month rally was 9%
3.The Bank Nifty staged a strong rebound after maintaining the rhythm of not correcting >20% that has been maintained since COVID lows
4.Market breadth seen significant improvement as the current reading of % stocks trading above 50- and 200-days SMA has jumped to 70% and 37% compared to last month reading of 15%.

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere