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According to analysts, trend remains weak and the 21,900 level is a major support for the Nifty. However a pullback rally cannot be ruled out considering the oversold market conditions; GIFT Nifty is trading marginally in green.
Trading Setup For April 8: On the upside, 22,800 will act as an immediate hurdle; while on the down side, 21,960 will serve as crucial support.
Nifty Prediction For Tuesday, April 8: After a massive selloff on Monday, the NSE benchmark index Nifty saw buying interest near lower levels and managed to close above the previous support of 21,960 at 22,160 despite high volatility. According to analysts, trend remains weak and the 21,900 level is a major support for the Nifty. However, they added, a pullback rally cannot be ruled out considering the oversold market conditions.
Nifty’s Key Support, Resistance Levels
“Technically, on the daily chart, Nifty formed a green candle, indicating buying interest near lower levels and managed to close above the previous support of 21,960 despite high volatility,” said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates.
On the upside, 22,800 will act as an immediate hurdle; while on the down side, 21,960 will serve as crucial support. Considering the oversold market conditions, a pullback rally cannot be ruled out. However, for a fresh directional move, the index must decisively cross the 22,800 mark, he added.
However, Rupak De, senior technical analyst at LKP Securities, said the index has fallen back into a descending channel on the daily timeframe as bearish sentiment rose amid escalating trade tensions between countries.
“The Nifty slipped by more than 1,000 points at one point but recovered to close 418 points off the low. For the day, the index found support around the multiple support zones near 21,700. In the short term, the trend remains weak,” De added.
He said that on the higher side, resistance is placed at 22,350 and 22,550. On the lower side, support is seen at 21,900, below which the decline is likely to resume.
The Nifty on Monday opened gap down amid weak global cues as China responded on Friday with its own retaliatory tariffs of 34% on US product thus rising US recession fears dampening global sentiment.
GIFT Nifty Today
As of 6:15 pm on Monday, the GIFT Nifty is trading marginally higher by 9.5 points at 22,329.5. However, amid the heightened volatility, the GIFT Nifty levels are swinging between green and red territories.
The BSE Sensex on Monday nosedived 2,226.79 points to close at 73,137.90, while the NSE Nifty slumped 742.85 points to settle at 22,161.60.
In the opening trade, the Sensex crashed 3,939.68 points to 71,425.01, the NSE Nifty tumbled 1,160.8 points to 21,743.65.
What Should Traders Do?
Bajaj Broking in its note said, “The Nifty after a gap-down open traded in a 400 points range (21,800-22,200) and closed the session sharply lower highlighting sharp decline for the second session in a row. Suggest avoiding aggressive position and wait for stability to return to market.”
The Nifty has immediate support at 21,800-21,750 being the confluence of Monday’s low and 24 months EMA. Index holding above the support levels can lead to a pullback towards 22,500 & 22,800 levels in the coming sessions from the current oversold territory. While a breach below 21,750 will signal extension of the decline towards 21,500-21,300 levels,” it added.
Bank Nifty: ‘Immediate Bias Remains Down’
The Bank Nifty opened gap down amid weak global cues amid rising US recession fears dampening global sentiment. The index in the process closed below the 20- and 50-days EMA.
“The Bank Nifty’s immediate bias remains down and only a formation of higher high and higher low in the daily chart will signal a pause in the current corrective trend. Bank Nifty has immediate resistance at 51,000 levels while key support to watch out on the lower side is 49,000-48,700,” Bajaj Broking said.
Along with the development on US tariff policies, market participant will also keep a close eye on the RBI monetary policy outcome and resumption of Q4FY25 earnings season in the current week, it added.
The RBI monetary policy committee’s 3-day meeting started on Monday and the repo rate decision will be announced on Wednesday. According to analysts, the RBI MPC is likely to cut interest rates by 25 basis points.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
