The Indian stock market is expected to open higher on Tuesday, April 8, after a strong rebound in Asian markets.
Gift Nifty Signals Positive Start
The Gift Nifty is trading around 22,650, which is about 386 points higher than the previous Nifty futures close, indicating a positive opening for Indian markets.
Market Recap: Monday’s Big Fall
On Monday, April 7, the Indian stock market saw its biggest single-day fall in 10 months:
- Sensex dropped 2,226.79 points (2.95%) and closed at 73,137.90.
- Nifty 50 fell 742.85 points (3.24%) and ended at 22,161.60.
What’s Next for Nifty 50?
According to market experts:
- Resistance Levels: 22,300 – 22,500
- Support Levels: 21,750 – 22,000
- Key Support to Watch: 21,743 – 21,530
On Monday, Nifty formed a bullish candle after falling sharply to a low of 21,743, which shows buyers are coming in at lower levels. However, the overall trend remains negative due to high volatility.
Nifty has now dropped below its 20-day, 50-day, and 100-day moving averages, which is a bearish sign. The India VIX, a measure of market fear, jumped over 65% to 22.79 – the highest since the COVID market crash, showing increased nervousness among investors.
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Expert Opinions
- Short-Term Traders: Should be cautious and consider a “sell-on-rise” strategy due to high volatility.
- Long-Term Investors: This dip could be a good opportunity to buy quality stocks at lower prices.
Options data also show a bearish tone:
- High call writing at 22,500 indicates strong resistance.
- Good put writing at 22,000 shows some support at that level.
- Put-Call Ratio dropped to 0.58, which signals growing caution among traders.
Bank Nifty Outlook
On Monday, Bank Nifty dropped 1,642.60 points (3.19%) and closed at 49,860.10. However, it formed a green candle, suggesting some buying at lower levels.
- Support Levels: 49,500 – 48,700
- Resistance Levels: 50,650 – 50,750 (needs to cross this to see a rally)
- Important Zone: 49,300 (a break below this could lead to a fall to 48,700)
Bank Nifty has also slipped below key moving averages, and its recent breakout setup has failed. The daily RSI (Relative Strength Index) is below 50, pointing to weak momentum.
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Both Private Bank and PSU Bank indices saw sharp falls, indicating overall weakness in the banking sector.
What to Watch This Week
- Updates on US trade tariffs
- RBI’s monetary policy announcement
- The start of Q4 earnings season
These events could impact market direction in the coming days.
Summary: Markets may open higher on April 8, but the overall trend is still cautious and volatile. While long-term investors may find buying opportunities, short-term traders should stay alert and manage risks carefully.
