On Thursday, April 18, the Indian stock market resumed its downward trajectory, recording its fourth straight losing session. A number of reasons contributed to the main indices, the Sensex and Nifty 50, closing in negative territory.

The indices were negatively impacted by selling pressure in major banking equities, including Axis Bank, ICICI Bank, and HDFC Bank. But calming global indicators, such as declining crude oil prices and a depreciating US dollar, assisted in containing the losses.

International investors continued to be concerned about the geopolitical tensions between Iran and Israel. Market sentiment turned cautious as a result of this uncertainty and diminishing expectations of US rate decreases.

The Sensex ended the day at 72,488.99, down 0.62%, with very few equities rising in value. With a decrease of 0.69%, the Nifty 50 closed the day at 21,995.85.

A notable decline was also observed in the total market capitalization, which fell from ₹402.2 lakh crore on April 10th to around ₹393.2 lakh crore on April 18th. For investors, this means a loss of over ₹9 lakh crore in just four days.

Profit booking was observed in the overall market, although certain industries, such as Nifty Media, were able to defy the trend and close higher. Conversely, industries such as FMCG, Nifty Healthcare, and Oil & Gas suffered large losses.

Due to a robust labor market and recent advancements in inflation management, experts surmise that the market is adjusting to the assumption of sustained higher US interest rates.

Analysts' analysis suggests that the Nifty 50 may be headed for a short-term bullish reversal, but further proof is required. Additionally, they pinpoint critical levels of support and resistance that may have an impact on the direction of the market soon.