While the broader trend a sideways-to-bullish bias, key technical levels and momentum indicators suggest cautious optimism as investors track the next directional move.

Indian equity markets closed higher on Friday, April 10, with the benchmarks - Sensex and Nifty - surging over 1 per cent, driven by a broad-based rally led by financial stocks and a positive trend in global equities. Investor sentiment also improved amid hopes of further easing in the West Asia crisis ahead of US-Iran negotiations and lower crude prices.

After staying in the positive territory throughout the day, the 30-share BSE Sensex later jumped 918.60 points or 1.20 per cent to settle at 77,550.25. During the day, it surged 990.85 points or 1.29 per cent to 77,622.50.

The 50-share NSE Nifty climbed 275.50 points or 1.16 per cent to end at 24,050.60. The positive trend was also by buying in banking, auto and financial stocks, while IT counters saw some profit booking after the quarterly results of IT giant TCS.

Nifty Prediction

Hitesh Tailor, Research Analyst, Choice Equity Broking Private Limited, said, "on April 6, the Nifty 50 opened the week on a firm footing, starting the session 75 points higher at 22,780.30. The index witnessed a strong rally during the day, climbing to an intraday high of 24,074.05 before settling at 24,050.60, registering a gain of 1,337.5 points (5.89%) on 10th April. This sharp rise highlights strong buying participation and reflects a bullish undertone in the market. Additionally, the index has closed above the 100 mark, suggesting a possible transition toward a positive trend. Overall, the price action indicates strengthening momentum and improved investor confidence."

"From a technical standpoint, the 23,500-23,150 range is likely to act as a key support zone. On the upside, resistance is expected in the 24,500-25,000 band. The Relative Strength Index (RSI) on the weekly chart stands at 44.23, indicating that the market is recovering from lower levels but is yet to reach overbought conditions."

"At the same time, India VIX fell by 7.72% to close at 18.85, pointing to reduced volatility and a decline in market fear. In the derivatives segment, significant call writing was seen at the 24,300 strike, with additional positions at 24,500. On the put side, strong writing at the 24,000 strike suggests this level may act as immediate support. Despite the easing volatility, traders should remain cautious and maintain disciplined risk management while monitoring key levels for further direction," Tailor added.

• Support Levels: 23,500-23,150
• Resistance Levels: 24,500-25,000
• Overall Bias: Sideways to Bullish

Meanwhile, Nandish Shah - Deputy Vice President, HDFC Securities, said, "after a brief pause, Nifty resumed its uptrend and rose 275 points to reclaim the 24,000 level. The index opened 105 points higher on the back of strong global cues, and extended gains throughout the session to close near the day's high. On a weekly basis, Nifty snapped a six-week losing streak, posting a sharp gain of 5.89%, its strongest weekly rise in percentage terms since 5 February 2021."

"Asian Paints, Eicher Motors, and Bajaj Auto ended as top gainers from Nifty pack, while Coal India, Sun Pharma, and Infosys buckled under selling pressure to end as top losers. All sectoral indices ended with gains except Nifty IT, with Auto, Realty and Financial Services ended with the biggest gains. Midcap and smallcap Indices outperformed the Benchmark Indices, with Nifty Midcap 100 and Smallcap 100 ending with gains of 1.52% and 1.65% respectively. The BSE advance-decline ratio surged to 3.54, marking the seventh consecutive day of positive breadth, signaling sustained buying interest in mid- and small-caps. For the week, both indices rocketed nearly 8%."

"The Indian rupee depreciated for the second consecutive session but managed to secure its second straight weekly gain. This resilience follows the unwinding of speculative positions as lenders rushed to meet the RBI's deadline for squaring up positions to comply with new limits. Today's rupee weakness was primarily driven by a rebound in crude oil prices ahead of this weekend's high-stakes US-Iran negotiations," said Shah, adding, "with a breakout above the swing high resistance of 24,025, Nifty now appears to be targeting the 50-DEMA near 24,200, followed by the swing low resistance at 24,571. On the downside, 23,700 has emerged as the new short-term support level."

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, "the market has witnessed an excellent reversal on the upside this week on the backdrop of Ceasefire announcement by US-Israel and Iran and the Nifty closed the week with the hefty gains of 5.89% as per w-o-w basis. After showing weakness on Thursday, Nifty rebounded firmly on Friday and closed the day higher by 275 points."

"The bearish pattern like lower tops and bottoms has been negated and one may expect subsequent unfolding of bullish higher tops & bottoms pattern in the near term. The bullish breakaway up gap that formed on 8th April is still intact after partially filled. Nifty on the weekly chart formed a long bull candle at the crucial support of 22200 which indicates significant trend reversal on the upside. This is positive indication and could open more upside in the near term."

Shetti added, "the underlying trend of Nifty is positive. A decisive upside above 24000-24100 levels could pull Nifty towards the next overhead resistance of 24500-24600 levels in the coming week. Immediate support is placed at 23700."

Bank Nifty prediction

Hitesh Tailor said, "the Bank Nifty index began the week session on a flat note, opening with a gap-up of 195 points at 51,747.6. It registered an intraday high of 55,978.5, indicating strong buying interest and aggressive upward momentum. As the session progressed, the index maintained a sideways-to-bullish bias and eventually closed at 55,912.75, posting a gain of 4,364 points (8.47%) on a weekly basis, which reflects a strong recovery and renewed bullish sentiment in the banking space. On the weekly timeframe, the index has formed a strong bullish candle, suggesting continued strength and potential for further upside if momentum sustains."

"From a technical perspective, the index is likely to find support in the 53,700-53,000 range, while resistance is placed around the 56,700-57,700 zone. The Relative Strength Index (RSI) stands at 47.16, reflecting improving momentum from lower levels, though it still remains below the bullish threshold," said Tailor, adding, "however, failure to sustain above higher levels may keep the index under short-term corrective pressure. Traders are advised to remain cautious, follow disciplined risk management, and closely monitor key levels for the next directional move."

• Support: 53,700-53,000
• Resistance: 56,700-57,700
• Overall Bias: Sideways to Bullish

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)

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