Did Nifty make short-term bottom by rallying 4% in 2 days? 23,800 is a massive hurdle, say experts

Sensex and Nifty surged over 2 percent on Tuesday, tracking a rally in global markets after US President Donald Trump relaxed some of the tariffs on electronics products and hinted at duty revision for automobiles.

Benchmark indices staged a sharp rebound for the second straight session in a row on Tuesday, raising hopes of a short-term bottom in the market as easing global trade tensions sparked broad-based buying across sectors.

Sensex jumped 1,577.63 points or 2.1 percent to close at 76,734.89, while the broader NSE Nifty surged 500 points or 2.19 percent to settle at 23,328.55.

The rally came on the back of positive global cues after US President Donald Trump signalled partial relief on tariffs imposed on electronics and hinted at possible duty cuts on automobiles.

During the session, Sensex zoomed as much as 1,750 points to 76,907.63 and Nifty touched an intraday high of 23,368.35, recovering nearly all the ground lost after Trump’s tariff announcement on April 2.

The relief rally also extended to midcap and smallcap stocks, while all major sectoral indices ended in the green.

“The market interpreted the tariff rollback as a sign of easing pressure on the US consumer and the global economy. That triggered strong momentum across Indian equities,” said Satish Chandra Aluri, Analyst, Lemonn Markets Desk.

Nifty Technical Outlook: 23,800 Key Resistance

With the Nifty registering a nearly 4 percent jump over two sessions, technical experts say the index has made a strong comeback, but faces stiff resistance near 23,800 levels.

"Technically, Nifty has decisively crossed above its 20-, 50- and 100-day exponential moving averages, which is a positive sign for bulls. However, the next key hurdle lies at 23,869 – the previous swing high. On the downside, the 22,900–23,000 zone is expected to act as immediate support," said Nandish Shah, Deputy Vice President, HDFC Securities.

Nagaraj Shetti, Senior Technical Analyst at HDFC Securities, echoed similar views. “A small red candle with a lower shadow was formed after the sharp upmove, which suggests a continuation of the uptrend. Nifty is also at the brink of a breakout above its 200-day EMA around 23,360. The presence of unfilled bullish runaway gaps reinforces the strength of this trend,” he said.

Shetti expects the Nifty to attempt fresh highs in the coming days, with short-term targets seen around 23,650 and 23,870 levels. “Immediate support is placed at 23,200,” he added.

While the momentum has turned in favour of the bulls, analysts warn that the sustainability of the rally will depend on global developments, foreign fund flows and upcoming earnings reports.

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