Trading Plan: Can Nifty 50 climb above 24,300, Bank Nifty hit 56,000?

Nifty Trading Plan

The Nifty 50 and Bank Nifty continued to be supported by relentless buying interest on April 22, extending their upward journey for the sixth straight session. Given that the Nifty 50 is trading far above all key moving averages, the trend remains favourable as long as bulls hold the index above the 24,000 zone in the upcoming sessions. The next target levels to watch would be 24,300, followed by 24,545. The Bank Nifty is likely to inch toward 56,000 as long as it defends 55,000 as a support, according to experts.

On Tuesday, April 22, the Nifty 50 closed at 24,167, up 42 points, while the Bank Nifty jumped 343 points to end at a fresh closing high of 55,647. Market breadth remained positive, with 1,657 shares advancing compared to 938 declining on the NSE.

Nifty Outlook and Strategy

Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors

In just 8 trading sessions, the Nifty has risen by over 11 percent, or nearly 2,500 points—the fastest rally since the Covid-19 low in 2020. The index broke above the 24,200 mark for the first time since January 2. Since April 8, no daily candle has closed below the previous day’s low, indicating that the outlook remains firmly bullish. Prices have retraced 50 percent of the decline that began in September 2024. With continued follow-up action, it is expected to retrace 61.8 percent, which lies near the 24,545 level. In summary, the trend for Nifty remains bullish. A break above 24,230 can lift prices further toward 24,545 or higher, as long as 23,950 remains protected on the downside.

Key Resistance: 24,545

Key Support: 23,950

Strategy: Long positions can be created above 24,230 with a stop-loss of 24,140, targeting 24,320 and 24,400 levels.

Nandish Shah, Senior Technical and Derivative Analyst at HDFC Securities

The Nifty remains bullish, trading above all key moving averages. On the downside, the 23,800–24,000 zone should act as immediate support, a level where significant Put writing has been observed. On the upside, immediate resistance lies at 24,300, followed by 24,545, which represents the 61.8 percent retracement of the earlier downtrend. Call writing at 24,300 indicates resistance at that level, and any close above it may trigger further short covering toward 24,545.

Key Resistance: 24,300, 24,545

Key Support: 23,870, 23,500

Strategy: Buy Nifty Futures around 24,000, with a stop-loss of 23,870, targeting 24,300, and 24,545 (cash levels).

Preeti K Chabra, Founder, Trade Delta

The Nifty formed a Doji-like candle on the daily chart—a sign of indecision following a strong rally. The index has closed higher for six consecutive sessions, indicating persistent bullish momentum. The RSI on the daily chart is at 65.97, showing continued strength without immediate signs of weakness. However, on the hourly timeframe, the RSI is in the overbought zone, suggesting a possible short-term exhaustion. A brief price or time correction cannot be ruled out.

On the weekly chart, the Nifty is approaching the upper Bollinger Band at 24,561, which may act as resistance. Additionally, the weekly options chain shows significant unwinding of in-the-money Call positions, reinforcing the bullish sentiment.

Key Resistance: 24,561, 24,857

Key Support: 24,050, 23,950

Strategy: Buy Nifty Futures near cash price of 24,060 with a stop-loss of 23,950, targeting 24,561 followed by 24,857.

Bank Nifty - Outlook and Positioning

Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors

Since reversing from the lows of 49,156, the Bank Nifty has gained more than 6,000 points in just 8 sessions, with private banks leading the rally. At the start of the week, prices broke above the key resistance at 54,470 and have consistently hit fresh highs, indicating strong buying interest.

In the previous session, the Bank Nifty outperformed the Nifty, crossing the 55,000 mark for the first time and making a fresh high near 55,961. The index is now trading near overbought territory, so a sudden reversal cannot be ruled out. A trend change would require a close below the prior day's low, near 55,243. Until then, the overall sentiment is expected to remain bullish with potential targets of 56,500.

Key Resistance: 56,500

Key Support: 55,200

Strategy: Long positions can be created above 55,850 with a stop-loss of 55,600, targeting 56,100 followed by 56,350.

Nandish Shah, Senior Technical and Derivative Analyst at HDFC Securities

The Bank Nifty continued its uptrend for the sixth straight day, closing at an all-time high. The short-term trend remains bullish, with the index trading above its 5-, 11-, and 20-day EMAs. Last week, Bank Nifty broke out from the downward-sloping trendline connecting the highs of September 27, 2024, and December 13, 2024. Momentum indicators and oscillators confirm the strength in this rally. In the options space, aggressive Put writing has been seen at 54,000–55,000 levels.

Key Resistance: 56,063, 57,051

Key Supports: 55,000, 53,900

Strategy: Buy Bank Nifty Futures on dips, with a stop-loss at 54,000. Immediate resistance levels are placed at 56,063 and 57,051, derived from the Fibonacci retracement of the entire decline from 54,467 to 47,702.

Preeti K Chabra, Founder Trade Delta

Bank Nifty saw new closing all-time high, reflecting sustained bullish momentum. The RSI on the daily chart is at 76.51, signaling an overbought condition, and the hourly RSI also remains elevated. This suggests a possible short-term consolidation or minor correction before the next leg of the rally.

From a derivatives perspective, the monthly options chain shows significant unwinding of in-the-money Calls, supporting the bullish sentiment and indicating confidence among market participants. Technically, the next resistance is seen at 56,963, corresponding to the 23.61 percent Fibonacci extension (drawn from the rise beginning April 11 on the hourly chart). On the downside, immediate support is at 55,071, followed by 53,610.

Key Resistance: 56,963

Key Support: 55,071, 53,610

Strategy: Buy Bank Nifty Futures near cash price of 55,460 for a target of 56,963 with a stop-loss of 55,071.