On Tuesday, Indian stock market benchmarks, the Sensex and Nifty 50, are poised for a positive opening, buoyed by a surge in global markets. Early indicators from the GIFT Nifty suggest a promising start, trading at approximately 23,290, which reflects a premium of nearly 373 points compared to the previous close of Nifty futures. Trading on the BSE and NSE was halted on Monday due to the observance of Ambedkar Jayanti.
Market Dynamics and Recent Trends
Last Friday, the Indian equity market experienced a significant rebound following the U.S. government’s decision to temporarily pause the 26% tariffs on imports from India. This resulted in the Nifty 50 surging past the 22,800 mark, while the Sensex soared by 1,310.11 points, or 1.77%, closing at 75,157.26. The Nifty 50 climbed by 429.40 points, settling at 22,828.55.
- Sensex: Closed at 75,157.26 (+1.77%)
- Nifty 50: Closed at 22,828.55 (+1.92%)
Technical Analysis Insights
According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the recent market activity signals a potential short-term recovery after previous declines due to tariff tensions. He notes that the Nifty is currently navigating through multiple resistance points, including the gap down from April 7 and the 10 and 20-day EMA (Exponential Moving Average) zones between 22,800 and 22,900.
Shetti emphasizes, "The formation of a bullish candle pattern on both daily and weekly charts is a promising sign for the market." He predicts that if the Nifty can maintain levels above 22,900 to 23,000, it may quickly target 23,400 to 23,500.
Nifty 50 Outlook for Today
On April 11, the Nifty 50 index rose 1.92%, closing at 22,828.55 and forming a bullish candle that indicates a strong recovery from oversold conditions.
- Resistance Levels:
- 23,060: 61.8% Fibonacci retracement level
- 22,700: New key support level
Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd., advises traders to adopt a "buy on dips" strategy.
Volatility and Caution
Puneet Singhania, Director at Master Trust Group, notes a sharp recovery in the Nifty 50 despite a weak start last week. He mentions that the India VIX surged by 46%, indicating ongoing volatility, with the Nifty trading below its crucial 21-day and 55-day EMAs—a sign of weakness. He cautions that key support can be found at 22,500 and 22,200, while resistance is expected around 23,050.
VLA Ambala, Co-Founder of Stock Market Today, anticipates that the Nifty 50 will find support at 22,700 and resistance near 23,100 to 23,230 during today’s trading.
Bank Nifty Performance Expectations
The Bank Nifty index also showed strength, gaining 762.20 points, or 1.52%, to close at 51,002.35 last Friday, forming a bullish candle on both daily and weekly charts.
- Resistance Level:
- 51,500: Previous gap down zone
- Support Levels:
- 49,500 to 49,000
According to Bajaj Broking Research, maintaining a position above 51,500 could lead to a pullback towards 52,100.
Singhania emphasizes that even amid broader market weaknesses, the Bank Nifty is exhibiting resilience, trading above critical EMAs. Key support is set at 50,400, aligning with the 21-day EMA, while the psychological resistance at 52,000 must be decisively crossed for further upward momentum.
Conclusion
As the Indian market gears up for today’s trading session, both the Nifty 50 and Bank Nifty show signs of resilience following recent developments. Traders are encouraged to stay informed and cautious, monitoring key levels that could influence market movements in the days to come.
