Nifty 50, Sensex Prices Projected to Move on April 27: Market Outlook

Indian Stock Market Seeks to Rebound from Last Week's Losses

The Indian stock market benchmark indices, Sensex and Nifty 50, are poised to open higher on Monday, following a rally in global markets. The trends on Gift Nifty indicate a positive start for the Indian benchmark index, trading around 24,135 level, a premium of nearly 212 points from the Nifty futures' previous close.

Last week, the Indian stock market experienced a sharp decline, with the benchmark Nifty 50 slipping below 23,900 level. The Sensex crashed 999.79 points, or 1.29%, to close at 76,664.21, while the Nifty 50 settled 275.10 points, or 1.14%, lower at 23,897.95.

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Technical analysts have identified potential support and resistance levels for the indices. For the Sensex, a reversal formation has appeared on daily charts, supporting further weakness from the current levels. Amol Athawale, VP Technical Research at Kotak Securities, believes that 77,000 would act as a crucial reference point for traders. Below this level, the correction wave is likely to continue, with Sensex potentially slipping to the 20-day SMA or 76,000.

On the upside, above 77,000, Sensex could bounce back up to 78,000 - 78,200. Amol Athawale added that a bearish candle was formed on the weekly chart, signaling profit booking at higher levels.

The Nifty 50 index formed a bearish candlestick pattern on the weekly chart, signaling profit booking at higher levels. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, believes that the underlying short-term trend of Nifty 50 continues to be weak, and further declines from here could drag Nifty 50 down to the next support of 23,500 in the short term. Immediate resistance is placed at 24,100 levels.

Nilesh Jain, VP-Head of Technical and Derivative research at Centrum Finverse Ltd., noted that the immediate support for Nifty 50 is now placed at the 21-DMA around 23,580. On the retracement front, the 38.2% Fibonacci level of the recent upmove is positioned at 23,690, which could be tested in the upcoming expiry week.

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The Bank Nifty index ended 215.25 points, or 0.38%, lower at 56,089.75 on Friday, forming a small bearish candlestick pattern on the weekly chart, signaling consolidation with a corrective bias after a recent strong up move. Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, believes that the immediate support for Bank Nifty is placed in the 55,500 - 55,400 zone. Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 55,000, followed by 54,500 in the short term.

Dr. Ravi Singh, Chief Research Officer from Master Capital Services Ltd., highlighted that the Bank Nifty index has slipped below its 55-day EMA, indicating emerging short-term pressure, however, it continues to hold above the 21-day EMA, suggesting that the broader structure remains relatively resilient and the intensity of selling is limited.