Nifty 50 and Bank Nifty Outlook: Impact of US-Iran Tensions on Market Sentiment

Nifty 50 and Bank Nifty Outlook: Consolidation Expected

The Nifty 50 index is expected to consolidate with range-bound trading and a negative bias in the upcoming sessions, given its fall below moving averages and a bearish crossover in the Relative Strength Index (RSI). The cancellation of talks with Iran by Donald Trump and the continuation of the standoff between the US and Tehran in the Strait of Hormuz may also weigh on sentiment.

The Nifty 50 fell 275 points (1.14 percent) to 23,898 on April 24, while the Bank Nifty slipped 215 points (0.38 percent) to 56,090, with persistent weakness in market breadth. About 2,300 shares saw selling pressure compared to 667 shares that gained on the National Stock Exchange.

Technical Analysis

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From a technical perspective, the benchmark Nifty 50 exhibited hesitation throughout last week after retracing nearly 50 percent of its recent decline and eventually failed to make a sustainable move beyond the same level. Despite this pause, the broader chart structure remains constructive, as the index continues to form a pattern of higher lows, indicating underlying strength.

Strategy

Osho Krishan, Chief Manager - Technical & Derivative Research at Angel One, suggests buying Nifty Futures on dips around 23,700 with a stop-loss of 23,480, and booking profits near 24,500–24,600.

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Rajesh Palviya, Senior Vice President Research (Head of Research) at Axis Securities, recommends selling Nifty Futures around 24,000 with a stop-loss of 24,100, targeting 23,800–23,700.

Anshul Jain, Head of Research at Lakshmishree Investments, suggests trading with a bullish bias only on strength, considering longs above 24,000 with a protective stop-loss below 23,950, targeting an upside toward 24,200.

Bank Nifty Outlook and Positioning

The two-week winning run in Bank Nifty took a pause last week, as the rate-sensitive index witnessed some profit booking. Osho Krishan maintains his earlier stance of remaining cautious and avoiding any aggressive longs for now, unless a convincing close above the bearish gap zone around 57,800 is witnessed.

Rajesh Palviya suggests buying Bank Nifty Futures around 55,750 with a stop-loss of 55,500, targeting 56,300–56,600.

Anshul Jain maintains a neutral stance as Bank Nifty remains choppy and range-bound, with longs preferred only above 57,100 or on a confirmed hold and reversal from the 55,500–55,600 support zone.