The Nifty 50 staged a smart bounce back on April 28 after a couple of days of correction, facing a hurdle at the previous week’s high and closing with more than one percent gains. The trend remains strong, given that the index traded well above all key moving averages (10-, 20-, 50-, and 200-day EMAs), all of which are headed upward.
Hence, if the index decisively surpasses 24,365 (the previous week’s high), a rally toward 24,500–24,550 (the 61.8 percent Fibonacci retracement) cannot be ruled out in the upcoming sessions. However, 24,000 is expected to act as a key support zone, according to experts.
The Nifty 50 opened higher at 24,070 and traded in positive terrain throughout the session, hitting an intraday high of 24,355 in the afternoon and closing at 24,328.5, up 289 points (1.20 percent). The index formed a long bullish candlestick pattern on the daily charts, which supports a further uptrend from current levels. However, the last five days’ trade signaled a range-bound movement between 24,000 and 24,365.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, believes that the short-term market texture remains on the bullish side. He suggests that buying on intraday dips and selling on rallies would be the ideal strategy for day traders.
On the downside, according to him, 24,200 and 24,100 would act as key support zones, while 24,400–24,500 could serve as crucial resistance areas for the bulls. However, if the market falls below 24,100, the uptrend could become vulnerable, he said.
The weekly options data also suggests that the Nifty 50 may face a hurdle at 24,500, while support is placed at 24,000. The maximum Call open interest was seen at the 25,000 strike, followed by the 24,500 and 24,300 strikes, with the maximum Call writing at 25,000, followed by 24,500 and 24,350 strikes. On the Put side, the 24,000 strike holds the maximum open interest, followed by 24,200 and 23,500, with the maximum Put writing at 24,000, and then at 24,200 and 24,300 strikes.
Bank Nifty
The Bank Nifty snapped a three-day losing streak and closed 769 points (1.41 percent) higher at 55,433, forming a long bullish candlestick pattern on the daily timeframe. All key moving averages tilted upward, signaling a healthy trend ahead.
According to Anshul Jain, Head of Research at Lakshmishree Investments, the index is now heading towards the swing high of 56,098.7, reaffirming bullish momentum. Hence, buying on dips towards 55,100 remains the preferred strategy.
He further noted that a breakout above 56,100 will strengthen the rally, with an initial upside target of 56,500. Price action and sentiment both support a continuation of the uptrend, he believes.
Meanwhile, the India VIX, the fear index, cooled slightly after rising for three consecutive days, declining 1.27 percent to 16.94. However, it remains elevated; thus, bulls need to stay cautious until the VIX decisively falls below the 15 mark.
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