Nifty 50 and Bank Nifty May Extend Gains for Fifth Consecutive Session Amid Trump's Iran Ceasefire Announcement

Market Sentiment and Technical Analysis

The Indian stock market is expected to see a positive sentiment boost in the upcoming sessions due to consistent improvement in momentum indicators, a two-week Iran ceasefire announced by Donald Trump, and a fall in oil prices. However, the Nifty 50 is still trading below its medium- and long-term moving averages, with the VIX sustaining at an elevated level.

Nifty 50 and Bank Nifty Performance

On April 7, the Nifty 50 jumped 155 points (0.68 percent) to 23,124, while the Bank Nifty rose 107 points (0.20 percent) to 52,716. Market breadth remained positive, with about 1,924 shares advancing compared to 1,061 declining shares on the NSE.

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Technical Analysis and Strategy

According to Ashish Kyal, Founder and CEO of Waves Strategy Advisors, the Nifty 50 is currently witnessing a pullback after a sharp decline, with the index closing in the green for four consecutive sessions. Supportive factors such as rupee appreciation, expectations of a stable RBI policy, and broad-based sectoral buying have helped the index reclaim and sustain above the 23,000 mark in the previous session.

Strategy: Long positions can be created if Nifty moves towards 22,990 and forms a reversal on the 15-minute chart, with a stop-loss at 22,790 and targets of 23,190 followed by 23,450.

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According to Aditya Thukral, Founder & Analyst of AT Research & Risk Managers, a follow-through bounce has been seen in the Nifty 50; however, the current leg of the rally seems to be nearing completion around 23,100–23,200. Buyers need to be cautious and use tight stop-losses to protect long positions.

Strategy: Sell Nifty Futures only below 23,010, with a stop-loss at 23,160 and a target of 22,710.

According to Preeti K Chabra, Founder of Trade Delta, the Nifty witnessed a choppy session but managed to close in the green, forming a higher high–higher low structure, indicating a continuation of bullish momentum.

Strategy: Consider buying Nifty Futures near 22,836 for targets of 23,164 followed by 23,282, with a stop-loss at 22,773.

Bank Nifty Outlook and Positioning

According to Ashish Kyal, Founder and CEO of Waves Strategy Advisors, the Bank Nifty has found strong support around the 50,000 mark and has shown a sharp rebound of more than 2,500 points. In this pullback, private banks have been the major contributors compared to PSU banks.

Strategy: Long positions in Bank Nifty Futures can be created above 52,800, with a stop-loss at 52,500 and targets of 53,300 followed by 53,680.

According to Aditya Thukral, Founder & Analyst of AT Research & Risk Managers, similar to the Nifty 50, the bounce in the banking index appears to be nearing completion. Any break below the higher low (52,312.45) within the current leg of the rise could trigger selling in this sectoral index.

Strategy: Sell Bank Nifty Futures only below 52,550, with a stop-loss at 52,850 and a target of 51,950.

According to Preeti K Chabra, Founder of Trade Delta, the Bank Nifty formed a bullish candle on the daily chart, registering a higher high–higher low pattern, indicating a strengthening price structure.

Strategy: Consider buying Bank Nifty Futures near the cash reference level of 52,013 for targets of 52,742 followed by 53,292, while maintaining a strict stop-loss at 51,790.