Nifty 50 Pulls Back from 24,400 Resistance, 25,000 Level Remains Elusive

Indian Stock Market Extends Rally, Fails to Hold Gains

The Indian stock market opened higher on April 16, extending its rally for the second consecutive session. However, the market failed to hold gains and slipped into the red in the second half of the trade due to selling pressure. The Sensex surged 619 points to 78,730.32 in early deals, while the Nifty 50 climbed 169.65 points to 24,400.95.

However, by 14:12 IST, the Nifty 50 was down 0.29% at 24,170.10 and the Sensex fell 0.24% to 77,927.27. Despite the intraday weakness, the broader trend shows signs of recovery, as per experts. The Nifty 50 had staged a strong rebound in the previous session, closing above the 24,200 mark and retracing nearly 50% of its decline from the peak of 26,341 to the recent low of 22,183, with this retracement level placed around 24,255.

Performance Across Various Timeframes

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The performance across various timeframes continues to present a mixed picture. According to NSE data, the index has increased by 1.57% in the past week and 3.16% over the last month. However, it is facing challenges in the medium-term, having dropped 6.01% over the past three months and 5.61% over the last six months. Year-to-date, it has decreased by 7.64%, yet it has managed to achieve a 3.04% return over the previous year, showcasing some level of resilience.

Expert Analysis

Sunny Agrawal, Head of Fundamental Research at SBI Securities, believes that the situation seems to be much better fundamentally, with relatively better global cues related to energy supply disruption. Valuations have turned comfortable with Nifty 50 trading at 18x PE multiple. Agrawal also noted that provisional business updates from banks have been upbeat and recent industry level credit growth is also at 2 year, which is augurs well for the heavy weight banking sector.

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Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, noted that bulls have made a strong comeback in recent weeks, with the Nifty 50 rallying over 2,000 points from recent lows in just 15 days and retracing nearly 50% of its earlier decline from the February peak. Markets are now absorbing geopolitical developments, including US–Iran tensions, more efficiently. However, the index has entered a crucial resistance zone of 24,400–24,800, which coincides with key technical indicators such as the 50 and 89 EMA and the 61.8% retracement level.

In the near term, some consolidation is likely, while the 24,000–23,900 zone is expected to provide immediate support.