Nifty 50, Sensex today: What to expect from Indian stock market in trade on April 22

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a muted note on Tuesday, tracking weakness in global markets.

The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 24,083 level, a discount of nearly 52 points from the Nifty futures’ previous close.

On Monday, the domestic equity market indices extended the rally for the fifth consecutive session.

The Sensex jumped 855.30 points, or 1.09%, to close at 79,408.50, while the Nifty 50 settled 273.90 points, or 1.15%, higher at 24,125.55.

Nifty 50 formed a long bull candle on the daily chart with a gap up opening.

“This is indicating a decisive upside breakout of down sloping trend line hurdle and also previous swing highs around 23,850 levels. Nifty 50 is now placed at the next resistance of 24,200 (swing high of early January 25) and one may expect this to be surpassed soon in the short term,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the underlying trend of Nifty 50 continues to be strong and with a sustainable move above 24,200, Nifty 50 could advance towards the next resistance of 24,550 levels (61.8% Fibonacci Retracement taken from Sept 24 high to March 25 low) in the near term.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty 50 Prediction

Nifty 50 crossed the psychological mark of 24,000 on April 21 and ended the session at 24,125.55, posting a robust gain of 1.15%.

“Nifty 50 index carried forward the bullish momentum from the previous week and has now reclaimed the 200-day simple moving average (SMA) while also holding comfortably above all key moving averages. On the daily chart, Nifty 50 has broken out, above a falling trendline resistance that had capped its multiple rally attempts in the past. This breakout, supported by a strong bullish candle formation, confirms a positive shift in momentum. The pattern of higher highs and higher lows remains intact, reaffirming the ongoing uptrend,” said Om Mehra, Technical Research Analyst, SAMCO Securities.

He believes Nifty 50 may attempt to sustain above the immediate resistance level at 24,250, while the support now shifts higher to 23,870.

“As long as the index holds above 23,950, a buy-on-dips strategy remains favourable for the coming session,” Mehra said.

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd. noted that the Nifty 50 formed a strong bullish candle on the daily chart, indicating strength.

“Nifty 50 has crossed the barrier of 23,870 and witnessed a fresh breakout of the rounding bottom pattern. This has sparked renewed buying interest, helping the index surpass its 200-DSMA, which is placed around 24,050. The next major hurdle for the index is near 24,230. If the index manages to close above this level, the rally could extend towards 24,500 – 24,800. As long as the index holds above 23,870, a ‘buy on dips’ strategy is recommended,” said Yedve.

VLA Ambala, Co-Founder of Stock Market Today expects the Nifty 50 to gather support levels at 23,980, 23,900, or 23,830 and meet resistance between 24,250 and 24,370 in the next intraday trading session.

Bank Nifty Prediction

Bank Nifty index jumped 1,014.30 points, or 1.87%, to close at 55,304.50 on Monday, forming a bullish candlestick pattern.

“Bank Nifty formed a bullish candlestick pattern, characterized by a higher high and higher low, along with a small bullish gap below its base (54,290 - 54,675) highlighting continuation of the uptrend. Index has rallied to a fresh all time high and has generated a breakout above 7 months broader range (54,450 - 48,000). It has also registered a faster retracement of the five-month correction in just two months, signaling renewed strength,” said Bajaj Broking Research.

The brokerage firm expects Bank Nifty to move towards the 56,000 zone in the coming sessions. Additionally, the Bank Nifty/Nifty ratio chart has broken out of a consolidation range, suggesting continued relative outperformance in the medium term.

“Dips should be viewed as buying opportunities, the recent major breakout area of 54,000 - 53,500 should reverse its role and act as support from a short term perspective,” said Bajaj Broking Research.

Om Mehra noted that over the past few sessions, the Bank Nifty index surged higher with a runaway gap, reflecting strong bullish momentum. The daily RSI is now hovering near the 75 mark, indicating the overbought zone and that momentum could slow down in the coming days.

“A trailing stop-loss approach would be prudent in the current scenario to protect gains. The uptrend can be considered intact as long as the index holds above 54,250 or until a clear reversal candlestick pattern emerges near the top. This could mark a phase of consolidation or a minor pullback before the next leg of the rally unfolds,” said Mehra.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.