Trade Setup For April 28: Nifty Faces Resistance At 24,365

The NSE Nifty 50 index faces resistance at 24,365 and support at 23,700, while volatility is expected to remain elevated amid geopolitical tensions, tariff related development and the progress of the Q4 earnings season, according to analysts.

Index on weekly chart has formed a bull candle with a long upper shadow, which maintained a higher high and higher low, signalling positive bias with profit booking at higher levels after recent strong upmove, according to Bajaj Broking. 

"Going ahead in the coming truncated week, a move above the last three sessions almost identical high, 24,365 will open further upside towards 24,550. Failure to move above last week high at 24,365 will signal consolidation in the range 23,500–24,350," said Bajaj Broking

As long as the market is trading below 24,100, the correction wave is likely to continue. On the downside, the market could slip to 23,800, and further downside may drag the index down to 23,700, according to Amol Athawale, vice president of technical research at Kotak Securities.

"Conversely, a breach above 24,100 could change market sentiment. If the market surpasses this level, it could rally to 24,400–24,500," Athawale said.

Bank Nifty has shown signs of exhaustion, with a spinning top pattern and negative divergence pointing to a possible pause in its uptrend, according to Aditya Gaggar, director of Progressive Shares. "Key support lies at 53,900, while the resistance zone of 55,130–55,420 remains crucial for further upside."

FII/DII Activity

Foreign portfolio investors continued to stay net buyers of Indian equities for the eighth straight session on Friday, while domestic institutional investors turned net buyers after three days of selling Indian equities.

FPIs bought stocks worth Rs 2,952.3 crore and domestic institutional investors mopped up equities worth Rs 3,539.9 crore, according to provisional data from the National Stock Exchange.

F&O Action

• Nifty May Futures down by 1.04% to 24,139 at a premium of 100 points.

• Nifty May futures open interest up by 2%.

• Nifty Options April 30 Expiry: Maximum call open interest at 25,000 and maximum put open interest at 23,500.

Put-Call ratio at 1.25, with highest change in put open interest at 23,700.

Market Recap

The benchmark equity indices extended losses to the second day on Friday as investors pulled their money out on anticipation of escalation in tension between India and Pakistan.

The NSE Nifty 50 closed 207.35 or 0.86% down at 24,039.35, while the BSE Sensex ended 588.90 points or 0.74% lower at 79,212.53. Investors' wealth declined Rs 1.92 lakh crore to Rs 190.15 lakh crore.

Major Stocks In News

• Dixon Tech: The arm IsmartU India to acquire KHY Electronics for Rs 121 crore.

• GAIL: The company signed MoU with CONCOE to explore adoption of LNG as alternative fuel.

• Aditya Birla Sun Life: The company plans to raise Rs 950 crore via bonds and shares.

Currency Market

The Indian rupee slumped against the US dollar in Friday's session on persistent dollar demands from importers for their month-end payment obligations and as cross-border tensions rose between India and Pakistan.

Global Cues

Markets in Japan, South Korea, and Australia advanced Monday as market participants await further development in trade talks in the region with the US. The Nikkei 225 and Kospi were trading 0.69% and 0.25% higher, respectively as of 7:06 a.m.

On Friday, the Dow Jones Industrial Average and S&P 500 ended 0.05% and 0.74% higher, respectively. The Nasdaq Composite ended 1.26% higher.

The dollar index was trading 0.17% higher at 99.64, and the brent crude was trading 0.16% up at $66.98 a barrel as of 7:09 a.m. The Bloomberg spot gold was 0.91% down at $3,289.48 an ounce.

The GIFT Nifty was trading 0.05%, or 13 points up at 24,242.00 as of 7:11 a.m.