Nifty 50, Sensex Outlook: Indian Stock Market Projections for April 24

Indian Stock Market to Remain Volatile on Friday

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to remain volatile on Friday, tracking mixed signals from global markets as rising crude oil prices and uncertainty over the US-Iran war weigh on sentiment. The trends on Gift Nifty indicate a higher start for the Indian benchmark index, with the Gift Nifty trading around 24,233, a premium of nearly 70 points from the Nifty futures' previous close.

On Thursday, the Indian stock market ended sharply lower, extending selloff for the second consecutive session, with the benchmark Nifty 50 closing below 24,200 level. The Sensex crashed 852.49 points, or 1.09%, to close at 77,664.00, while the Nifty 50 settled 205.05 points, or 0.84%, lower at 24,173.05.

Sensex and Nifty 50 Predictions

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Sensex is forming a continuation of the correction on intraday charts, and on daily charts, a bearish candle has been formed, which is largely negative. According to Shrikant Chouhan, Head Equity Research at Kotak Securities, the 50-day SMA (Simple Moving Average) or 78,200 would act as an immediate resistance zone. Below this level, the correction wave is likely to continue.

On the upside, Chouhan believes a move above 78,200 could lead to a bounce back towards 78,500 - 78,800.

Nifty 50 index formed a bearish candlestick pattern signalling consolidation with corrective bias for the second session in a row after recent strong up move. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the short-term trend of Nifty 50 remains subdued, but the overall near-term pattern remains positive.

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Nifty Options Data

Notable call writing was observed at the 24,300 strike, while put writing was seen at the 24,200 level, indicating a narrow trading range and mixed positioning among market participants.

Bank Nifty index plunged 819.45 points, or 1.43%, to close at 56,305.00 on Thursday, forming an evening star pattern on the daily chart, indicating a potential short-term reversal after the recent up move. According to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, the 55,900 – 55,800 zone is expected to act as crucial support.

On the upside, Shah believes the 200 day EMA zone of 56,650 – 56,750 will act as an immediate resistance area.