Nifty 50 and Bank Nifty Face Test of Tuesday's Low as US Extends Iran Ceasefire

Market Outlook: Nifty 50 and Bank Nifty

The Indian stock market is expected to take further direction based on its reaction to the announcement of the US extending the Iran ceasefire. The market's performance in the upcoming sessions will be crucial in determining the direction of the market.

Nifty 50

The Nifty 50 index has been on a three-day winning streak, with a gain of 212 points (0.87 percent) to 24,577 on April 21. This surge has brought the index closer to the 24,700-24,800 levels, which are expected to act as resistance zones. However, in case of profit booking, the index may find support at 24,400-24,350 levels, near the previous day's low.

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Bank Nifty

The Bank Nifty index also showed a significant gain of 789 points (1.39 percent) to 57,371 on April 21. The index is expected to find support at 56,700, which coincides with the 200-day EMA. Below this level, 56,300-55,800 are the levels to watch. On the upside, immediate resistance could be seen at 57,700-58,000.

Nifty 50 Outlook and Strategy

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The Nifty 50 index has been protecting the prior day's low on a closing basis for the past week, indicating strength. The index is now nearing a "wall of resistance" located around 24,620-24,700, aligning with the 100-day EMA. A breakout above this zone is required for the ongoing buying momentum to continue.

Strategy for Nifty 50

Traders should maintain strict stop-losses while creating fresh long positions. Nifty closed above the prior day's high, which is a positive sign. For now, dips can be used as a buying opportunity, with an upside target of 24,700, while 24,340 remains an important support level.

Bank Nifty Outlook and Positioning

The Bank Nifty index broke out of a minor consolidation range and closed above the prior day's high, indicating fresh buying interest. The index continues to trend higher while respecting an upward-sloping trendline, reflecting sustained strength.

Strategy for Bank Nifty

Long positions in Bank Nifty Futures can be created if the index dips toward 57,150-57,200, with a stop-loss at 56,950 and targets of 57,400 and 57,700.

Market Breadth

Market breadth remained positive, with about 1,875 shares seeing buying interest compared to 1,109 declining shares on the NSE. This indicates a strong bullish sentiment in the market.

Conclusion

The Indian stock market is expected to take further direction based on its reaction to the announcement of the US extending the Iran ceasefire. The Nifty 50 and Bank Nifty indices are expected to face resistance at 24,700-24,800 and 57,700-58,000, respectively. However, in case of profit booking, the indices may find support at 24,400-24,350 and 56,300-55,800, respectively. Traders should maintain strict stop-losses while creating fresh long positions, and a buy-on-dips strategy remains favourable for both Nifty 50 and Bank Nifty.