Technical View: Nifty likely to march toward 24,550 amid possible consolidation; Bank Nifty above 55,000 for first time

Nifty Technical View

Bulls remained fully charged even at the start of the monthly F&O expiry week, helping the Nifty 50 reclaim the 24,000 level for the first time since January, with a more than one percent rally following a gap-up opening on April 21. The index touched the upper line of the Bollinger Bands with above-average volumes, and momentum indicators remained strong, suggesting a healthy trend ahead, although consolidation remains a possibility.

According to experts, the next crucial resistance for the Nifty 50 is expected to be 24,550 (61.8 percent Fibonacci retracement from the September 2024 record high to the April 2025 low), especially after decisively surpassing and closing above the 50 percent Fibonacci retracement on Monday. However, immediate support is placed at 23,900.

On April 21, the Nifty 50 opened higher at 23,949, touched an intraday high of 24,190 and a low of 23,904. The index finished at 24,126 (its highest closing level since January 2), rising by 274 points (1.15 percent), supported by buying across most sectors (barring FMCG), and formed a bullish candlestick pattern on the daily charts.

On the upside, according to Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan, this rally is likely to continue towards 24,550.

While Nifty has touched the daily upper Bollinger Band, suggesting the possibility of some consolidation, the undertone remains bullish, and stock-specific action is expected to continue, he said. Intraday dips towards the support zone of 24,000–23,950 should be considered a buying opportunity, he advised.

The monthly F&O options data suggests that the Nifty is likely to trade within a broad range of 23,500–25,000 in the short term. The maximum Call open interest is observed at the 25,000 strike, followed by the 24,500 and 24,200 strikes. The maximum Call writing is at the 24,200 strike, followed by the 24,300 and 24,150 strikes. On the Put side, the 24,000 strike holds the maximum Put open interest, followed by the 23,500 and 23,400 strikes, with the maximum Put writing at the 24,000 strike, followed by the 24,100 and 23,900 strikes.

Bank Nifty

The Bank Nifty continued to outperform the Nifty 50, hitting a fresh record high and surpassing the 55,000 zone for the first time after a gap-up opening. The index jumped 1,014 points (1.87 percent) to 55,305 and formed a bullish candlestick pattern on the daily timeframe.

The index has been forming higher highs and higher lows for the past five sessions. "Now, it has to hold above the 55,000 zone for an upward move towards 55,750 and then 56,000 zones, while on the downside, support has shifted higher to 55,000 and then 54,750 zones," said Chandan Taparia, Head of Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services.

Meanwhile, the India VIX, the fear gauge, snapped a four-day weakening trend and settled 0.31 percent higher at 15.52. It needs to decisively close below the 15 zone for more confidence in the bulls' camp.

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