Indian Stock Market Outlook: Nifty 50 and Sensex Trading Expectations for April 22

Indian Stock Market Benchmark Indices Expected to Open Lower on Wednesday

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday, tracking mixed cues from global markets, as investors remain cautious after the US-Iran ceasefire was extended.

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nify was trading around 24,430 level, a discount of nearly 154 points from the Nifty futures' previous close.

On Tuesday, the Indian stock market ended sharply higher amid hopes of US-Iran peace talks, with the benchmark Nifty 50 closing above 24,500 level. The Sensex surged 753.03 points, or 0.96%, to close at 79,273.33, while the Nifty 50 settled 211.75 points, or 0.87%, higher at 24,576.60.

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Market Outlook for Sensex, Nifty 50, and Bank Nifty

Sensex Prediction

Sensex formed a bullish candle on daily charts, and it is holding an uptrend continuation formation on intraday charts, which is largely positive.

According to Shrikant Chouhan, Head Equity Research at Kotak Securities, the short-term market texture is bullish, but due to temporary overbought conditions, some profit booking may occur at higher levels. For day traders, 79,000 would act as immediate support zones. Above these levels, Sensex could continue its positive move towards 79,800 - 80,000. Conversely, below 79,000, we could see a quick intraday correction.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Nifty Options Data

In the derivatives segment, notable call writing was observed at the 24,700 and 24,800 strike levels, indicating resistance zones. On the put side, significant writing at 24,500 and 24,400 levels suggests strong support at lower levels.

Nifty 50 Prediction

Nifty 50 formed a bullish candle with a broader body and minor wick on the daily chart, indicating the dominance of the ongoing uptrend.

According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, a long bull candle was formed on the daily chart that has surpassed the resistance of previous downside gap at 24,400 levels and closed higher. This is a positive indication. The underlying trend of Nifty 50 remains positive. All eyes on the upcoming US-Iran Peace talks which is scheduled in Islamabad this week. The negative outcome of the talk could have knee-jerk action for the Nifty 50 in the short term.

Bank Nifty Prediction

Bank Nifty index jumped 789.10 points, or 1.39%, to close at 57,371.45 on Tuesday, forming a sizeable bullish candle on the daily chart, highlighting robust buying interest.

According to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, Bank Nifty has also managed to close above its 100 day and 200 day EMA, which is a positive technical development and signals improving trend strength.

Comparison of Market Indices

Note: The expected closes for the market indices are based on the predictions of the analysts mentioned in the article.