Trading Plan: Can Nifty 50 reclaim 24,350, Bank Nifty hold above 55,000 amid consolidation?

Nifty Trading Plan

The Nifty and Bank Nifty were moderately under pressure on April 24 due to profit booking, which was warranted. However, overall, the trend remains favourable for bulls. As long as the index holds the 24,100–24,000 zone, an upward move toward the 24,350–24,550 levels is likely in the upcoming sessions despite intermittent consolidation. However, bulls need to be cautious as the VIX climbed above the 16 mark. Meanwhile, as long as the Bank Nifty stays below the 56,000–56,100 key resistance zone, it may consolidate, with immediate support at 55,000, followed by key support around the 54,700 area, according to experts.

On Thursday, April 24, the Nifty 50 declined 82 points to close at 24,247, while the Bank Nifty finished at 55,201, down 169 points, with market breadth slightly in favour of bears. About 1,331 shares saw a correction compared to 1,210 shares that gained on the NSE.

Nifty Outlook and Strategy

Hardik Matalia, Derivative Analyst at Choice Broking

On the daily chart, the Nifty index formed a small bearish-bodied candle with a long upper wick and a short lower wick, indicating selling pressure at higher levels. This pattern reflects indecision among market participants and suggests that bulls were unable to sustain intraday gains. Amid this uncertainty, the index ended the session negatively, closing near the 24,250 mark. On the downside, 24,000 is seen as immediate and crucial support, followed by a stronger support zone near 23,800. On the upside, 24,350 remains a key resistance; a decisive move above this level could trigger a potential rally towards the 24,500–24,700 range.

Given the prevailing market momentum, traders are advised to adopt a disciplined approach with strict risk management while capitalizing on emerging opportunities. Buying on dips can be considered as long as the Nifty holds above the 23,500 level. However, in light of ongoing global uncertainties, it is prudent to avoid large overnight positions and maintain tight risk control.

Key Resistance: 24,350, 24,500

Key Support: 24,000, 23,800

Strategy: Buy Nifty Futures on dips near 23,800 levels, with a stop-loss of 23,500 on a closing basis, for a target of 24,500–24,700 levels.

Chandan Taparia, Head Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services

Currently, the Nifty is showing strength and could move higher towards the 24,600 level, whereas support has shifted higher towards 24,000. Buying interest is visible at support levels, which may help the Nifty move towards 24,500.

On the weekly chart, the index has formed a bullish candle, signalling positive momentum, while the daily chart reflects some sideways movement, indicating buying interest at lower levels with a gradual upside. The index remains above key moving averages, suggesting that bulls are in control despite short-term volatility. As long as it holds above 24,100, the index may move towards 24,400, then 24,600, while support can be seen at 24,100, followed by 24,000.

Key Resistance: 23,400, 24,600

Key Support: 24,000, 24,100

Strategy: Buy Nifty Futures on dips with support at 24,000, for an upside target towards 24,400/24,600 levels.

Dhupesh Dhameja, Derivative Research Analyst at Samco Securities

Despite mild intraday weakness, the Nifty 50 held just above its three-month peak, hinting at underlying strength. A sharp prior rally now gives way to a likely time-based correction, with the index boxed between 24,500 and 24,000—an area to watch for directional cues. An inside bar on the daily chart signals brewing consolidation, while the 23,900–24,000 zone has flipped into crucial support. RSI remains healthy above 60, but hourly charts flash warning signs of fatigue via negative divergence.

The 24,400–24,500 supply zone continues to act as resistance; breaching it could trigger a fresh up move, while a dip below 24,000 may allow for a mild retracement. As long as Nifty remains within this range, the bias stays rangebound, supporting a ‘Range Trading’ strategy. Meanwhile, a surge in VIX signals rising unease, so traders should remain agile amid potential swings.

Key Resistance: 24,400, 24,550, 24,700

Key Support: 24,150, 23,950, 23,800

Strategy: Traders can consider a Short Strangle strategy for the April 30 expiry by selling one lot of the 24,400 Call at Rs 132 and one lot of the 24,000 Put at Rs 103. This setup aims to capitalize on sideways price action, generating premium income while keeping downside risk controlled within the strike boundaries. Hold the strategy with a maximum Mark-to-Market (MTM) loss capped at Rs 6,500. For targets, hold until expiry for a maximum profit of Rs 17,625, or consider booking profits if MTM gains exceed Rs 7,000.

Bank Nifty - Outlook and Positioning

Dhupesh Dhameja, Derivative Research Analyst at Samco Securities

Bank Nifty extended its corrective streak on Thursday as sellers dominated at higher levels, though the index held firm above the 55,000 mark. A bearish engulfing candlestick on the daily chart signals a short-term reversal, suggesting profit booking may persist unless bulls reclaim the 56,000 zone, a crucial barrier for any upside revival. The index now trades within a 56,000–54,500 range, indicating a time-wise cool-off after a sharp uptrend.

Despite the pause, RSI remains elevated above 70, reflecting strength, though signs of exhaustion are visible. The 54,200–54,700 gap zone continues to act as a strong base, while 56,000–56,200 remains a resistance-heavy ceiling. On the options front, firm Put writing at 55,000 underpins solid support, while aggressive Call additions at 55,500–56,000 cap the upside. As long as Bank Nifty remains below 56,000, the bias stays cautious, supporting a ‘sell on rise’ strategy.

Key Resistance: 55,500, 55,700, 56,000

Key Support: 55,000, 54,700, 54,400

Strategy: Sell Bank Nifty May Futures if the price falls below 55,150–55,100, setting a stop-loss above 55,500. Consider booking profits at 54,700–54,550.

Hardik Matalia, Derivative Analyst at Choice Broking

Despite the lack of recovery, Bank Nifty managed to hold above the crucial 55,000 mark and closed at 55,200, reflecting resilience amid broader market weakness. The index trades above all key moving averages—20-day, 50-day, and 200-day EMAs—indicating a strong underlying bullish trend that may persist. As long as the index remains above these averages, sentiment remains positive, favouring a buy-on-dips strategy. On the upside, immediate resistance is at 55,500; a breakout above this could invite fresh buying, potentially pushing the index toward 56,000–56,200. On the downside, 55,000 remains immediate support, followed by 54,500.

Key Resistance: 55,500, 56,000

Key Support: 55,000, 54,500

Strategy: Buy Bank Nifty Futures on dips near 54,500, with a stop-loss at 54,000 on a closing basis, targeting 56,000–56,200 levels.

Chandan Taparia, Head Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services

Bank Nifty formed a small-bodied candle on the daily scale as buying interest was visible at lower levels, with some profit booking at higher levels. The index has formed a higher top–higher bottom pattern on weekly charts and posted a strong closing, indicating strength. It now needs to hold above the 55,000 zone for a move toward 55,750, then 56,000. On the downside, support levels have shifted higher to 55,000, followed by 54,750.

Key Resistance: 55,750, 56,000

Key Support: 55,000, 54,750

Strategy: Buy Bank Nifty Futures on dips, with support at 54,750, targeting 55,750/56,000 zones.