Trading Plan: Will bulls help Nifty reclaim 23,000, Bank Nifty hit 51,500?

Nifty Trading Plan

The Nifty 50 and Bank Nifty finished the session lower after rangebound trading on April 9, but sentiment in the upcoming session is expected to shift in favour of the bulls, tracking fresh tariff-related developments. The US has announced a 90-day pause on tariffs for all countries except China, which attracted a steep tariff rate of 145 percent.

Experts expect a strong rally with gap-up opening; however, they believe the uncertainty surrounding tariffs is unlikely to end soon, and volatility may remain high. According to them, technically, the 22,850 level is expected to be the immediate hurdle for the Nifty 50. If surpassed, levels of 23,000–23,200 can’t be ruled out, as long as the index holds 22,250–22,000 as support. The Bank Nifty may rally to the 51,000–51,500 zone as long as it holds the 50,000 level as support.

On Wednesday, April 9, the Nifty 50 closed at 22,399, declining 137 points, while the Bank Nifty fell 271 points, ending at 50,240. The market breadth was in favour of bears, with 1,655 shares declining against 870 shares advancing on the NSE.

Due to strong global cues, the Nifty is likely to witness a huge gap-up opening. It is expected to test the upper end (22,857) of the gap area formed on April 7. This extreme volatility may indicate a near-term bottom, especially as it follows a 17% correction over the last six months. However, due to high volatility, position sizing should be adjusted accordingly.

Key Resistance: 22,800, 23,000

Key Support: 22,200, 22,000

Strategy: Buy Nifty Futures with a stop-loss of 22,400, targeting 22,800–23,000.

This week, the Nifty opened with a gap down, triggered by global tariff tensions. It touched a low of 21,743 but later staged a strong recovery, rallying up to 22,697. On the daily chart, Nifty managed to close above its previous closing low of 22,082, recorded on March 4. Additionally, it attempted to fill the gap while forming a higher top and higher bottom structure—a technically positive signal. However, the momentum indicator RSI remains below 45, suggesting limited short-term strength.

Key Resistance: 22,800, 23,300

Key Support: 22,000, 21,700

Strategy: Sell Nifty Futures near 22,600, targeting 22,000 and 21,700, with a stop-loss of 22,800.

The Nifty continues to trade below the upper band of the falling channel, indicating resistance near the 22,500 level. A decisive breakout above this could trigger a rally, potentially pushing the index toward the 22,750–22,800 zone.

Key Resistance: 22,500, 22,750, 22,800

Key Support: 22,400, 22,000

Strategy: Buy Nifty 22,200 strike Put of April 17 expiry above Rs 225, with a stop-loss of Rs 184, targeting Rs 290. The maximum profit is Rs 4,875 and the maximum loss Rs 3,075.

Bank Nifty led the March rally and has continued to outperform relative to the broader market. It has witnessed only a 5–6 percent correction in the recent decline. The index is expected to continue its outperformance on the upside. It is likely to test the recent high of 52,000, and beyond that, potentially extend towards 53,500, which is the weekly upper Bollinger Band. The 50,000 level (40-day average) is likely to act as strong short-term support.

Key Resistance: 51,500, 52,000

Key Support: 50,000, 49,800

Strategy: Buy Bank Nifty Futures with a stop-loss of 50,000, targeting 51,500.

On the weekly timeframe, Bank Nifty has clearly outperformed the benchmark Nifty, maintaining its position above the previous swing low. On the daily chart, the index has formed a higher top–higher bottom structure on a swing basis, reflecting a strengthening trend. Additionally, the RSI is hovering around 50, indicating a buildup of positive momentum.

Key Resistance: 52,100, 52,850

Key Support: 49,600, 48,500

Strategy: Buy Bank Nifty above 52,100, targeting 52,850 and 53,800, with a stop-loss of 51,550.