Nifty Faces Crucial Support Test at 50-DEMA Level Ahead of Potential Upswing to 24,600

Nifty 50 Sees Profit Booking as Uncertainty Persists

The Nifty 50 closed 0.8 percent lower on April 22, following three days of gains, as investors remained cautious due to uncertainty around US-Iran talks and ongoing shipping disruptions at the Strait of Hormuz. Despite Donald Trump extending the Iran ceasefire, the broader market sentiment remained subdued, with the index staying well above short- and medium-term moving averages.

The Nifty 50's near-term momentum appears subdued, but the broader structure remains positive. The index has sustained above the 50 percent Fibonacci retracement at 24,270, as well as above the 50-day EMA at 24,223. These levels can act as immediate support for the market. Below these levels, the 24,000–23,900 zone will be crucial to watch.

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The index has been trending higher, with the 10- and 20-day EMAs trending higher. However, the Nifty 50 is still 1.2 percent and 1.7 percent below the 100- and 200-day EMAs, respectively. On the upside, the 24,600 is expected to be an immediate hurdle followed by the 24,700–24,800 range, where the 100- and 200-day EMAs are positioned. A move above this zone could shift focus toward the 25,000 level.

The Nifty 50 opened lower and remained in negative territory throughout the session, falling 199 points (0.81 percent) to close at 24,378. The index formed a bearish candle with a minor shadow on the daily timeframe, reflecting intraday selling at higher levels. It also closed within the previous day's range, indicating a lack of directional conviction.

The Nifty 50's technical structure remains intact, with the bullish gap between 24,100 and 23,900 acting as a crucial support zone. Multiple resistance zones are positioned near 24,600–24,660, coinciding with the 100-day EMA. This is followed by a stronger hurdle at 24,750–24,800, where the 61.8 percent Fibonacci retracement aligns with the 200-day EMA.

Osho Krishan, Chief Manager – Technical & Derivative Research at Angel One, retains a constructive outlook on the market and advocates a buy-on-dips strategy near the aforementioned support zones.

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Monthly options data continues to suggest that 25,000 remains a crucial resistance level for the Nifty 50 in the short term. The immediate hurdle is placed at 24,400–24,500, while key support is seen at the 24,000 level.

The India VIX remained below the 19 zone for the sixth consecutive session, sustaining below short- and medium-term moving averages. However, it rose 4.38 percent to 18.3, causing some discomfort for bulls. A decisive fall below the 16 level is necessary for bullish momentum to strengthen.

Bank Nifty Defends Key Levels

The Bank Nifty also saw profit booking, declining 247 points (0.43 percent) to 57,124 amid low volumes. However, it remained above all key moving averages. Notably, the long-term moving averages (100- and 200-day EMAs) have been held for the second consecutive session, while short-term moving averages continue their upward trajectory.

The Bank Nifty defended the 57,000 level intraday, though the upside was capped near the previous day's high zone of 57,450–57,500. The RSI remained well above the 50 zone but edged lower to 57.83, while the MACD stayed above the zero line with a bullish crossover.

Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, expects the immediate resistance for Bank Nifty to be placed in the 57,500–57,600 zone. Any sustainable move above this range could extend the uptrend toward 58,000, followed by 58,400 in the short term.

On the downside, the 56,600–56,500 zone is likely to act as immediate support.