On a positive note, the Indian stock market experienced a significant uplift as the NSE Nifty 50 surged by 1.15%, closing at 24,125.55, while the BSE Sensex saw an increase of 1.09%, settling at 79,408.5. This marks a strong performance for both indices, indicating a renewed sense of optimism among investors. Analysts are closely monitoring key resistance and support levels, suggesting potential strategies for traders moving forward.

Market Momentum and Key Resistance Levels

The Nifty 50 has successfully breached the 23,870 mark, signaling a fresh breakout from a rounding bottom pattern, as highlighted by Hrishikesh Yedve, a technical analyst at Asit C Mehta Investment Intermediates Ltd. With this momentum, the Nifty is now eyeing the 24,200–24,325 range as its next resistance zone, particularly the critical hurdle at 24,230.

• If the index closes above 24,230, experts predict it could extend its rally towards 24,500–24,800.
• As long as the index remains above 23,870, a strategy of buying on dips is recommended.

Support Levels to Watch

According to Shrikant Chouhan, head of equity research at Kotak Securities, the 24,000 and 23,900 levels will serve as essential support areas. For day traders, maintaining positions above 23,900 is crucial. They should look to buy during intraday corrections and sell on rallies. However, if the index dips below this support, it could trigger a shift in market sentiment.

Bank Nifty’s Strong Performance

The Bank Nifty has also shown robust performance, surpassing its previous all-time high of 54,470 and exhibiting a breakout in the daily chart. Yedve emphasizes that this level is now a vital support point for the Bank Nifty, with potential to rise towards 56,000–56,300 if the momentum continues.

Foreign and Domestic Investor Activity

Foreign portfolio investors (FPIs) have remained net buyers of Indian equities for the fourth consecutive session, purchasing stocks worth ₹1,970.2 crore. Domestic institutional investors (DIIs) have also turned net buyers, acquiring equities worth ₹246.6 crore after three days of net selling, according to preliminary data from the National Stock Exchange.

Futures and Options Insights

In the derivatives market, Nifty April futures rose by 1.17% to 24,131, maintaining a premium of 10 points. However, there was a 5% decline in open interest for Nifty April futures. For the upcoming April 24 expiry, the maximum call open interest is seen at 25,500, while the maximum put open interest stands at 23,000.

Overall Market Recap

With gains for four straight sessions, the benchmark equity indices have reached their highest levels since early January. The Nifty Bank index closed at a historic 55,304.5, reflecting an increase of 1.87%, driven by positive investor sentiment stemming from recent earnings reports.

Notable Stock Movements

Several stocks captured attention in the market:

• Steel Stocks: Companies like Sail, JSW Steel, and Tata Steel are in focus due to the government’s decision to impose a 12% safeguard duty on certain steel imports, aimed at protecting domestic players from cheaper imports.
• Vedanta: The company has entered a facility agreement with Twin Star Holdings worth $530 million to manage its financial obligations.
• Paytm Money: This subsidiary of One 97 Communication has announced reduced interest rates and revised brokerage terms to enhance affordability for investors.
• Coal India: The company has made a non-binding agreement with Damodar Valley Corporation to develop ultra-supercritical units for a thermal power station in Jharkhand.
• Tata Power: In partnership with Tata Motors, it is set to establish a 131 MW wind-solar hybrid project.

Currency and Global Market Trends

The Indian rupee strengthened for the fifth day in a row, closing 24 paise higher on Monday. Meanwhile, Asian markets faced challenges, with the Nikkei 225 down 0.32% and the S&P ASX 200 declining 0.53% amid concerns over U.S. Federal Reserve policies. The U.S. stock indices experienced significant declines, with the Dow Jones Industrial Average and S&P 500 falling by 2.48% and 2.36%, respectively.

As the market landscape continues to evolve, investors are encouraged to stay informed and adapt their strategies accordingly to navigate the ongoing fluctuations.