Indian equity markets staged a sharp rebound on Monday, April 6, recovering from early losses triggered by fluctuation in crude oil prices amid reports of ceasefire efforts in the ongoing West Asia war. Intense buying in banking and IT stocks, and a strengthening rupee, supported investor sentiment, traders said.
Nifty at close on Monday, April 6
As the market opens on Tuesday, analysts expect the Nifty to maintain a cautiously bullish bias, supported by improving technical indicators and strong buying at lower levels.
He noted that the Nifty has never risen for more than three trading sessions since the U.S-Iran War started in late February. “This streak will come to an end if Nifty extends the pullback for one more session. Trading activity was somewhat subdued, with NSE cash market volumes dipping 1% compared to the previous session,” he added.
Nifty gainers and losers on Monday, April 6
In the Nifty pack, Trent, SBI Life, and Titan led the gains, while Reliance, ONGC, and Max Health saw the heaviest selling.
“Except for Oil & Gas and Media, all sectoral indices ended positive, led by Consumer Durables, PSU Banks, and Realty,” Rajani stated.
Board markets on Monday, April 6
In the broader market, strong gains were seen across indices. Nifty 100 rose by more than 1 per cent, while Nifty Midcap 100 surged by 1.52 per cent and Nifty Smallcap 100 gained 1.29 per cent.
Sectorally, most indices ended in the green. Nifty PSU Bank index rose by 2.33 per cent, while Nifty Realty and Nifty Consumer Durables also gained more than 2 per cent each. Nifty Auto was up by 1.08 per cent, Nifty FMCG gained 0.8 per cent, and Nifty IT advanced by 0.64 per cent.
In the commodities market, gold prices continued their upward trend, trading at Rs 1,50,890 per 10 grams for 24 karat, while silver prices also rose to Rs 2,34,531 per kg.
Consumer durables emerged as the top performer, supported by a strong demand outlook and interest in consumption-led themes. IT stocks also outperformed, with the Nifty IT index gaining on the back of rupee movements and defensive buying amid geopolitical uncertainty, as currency weakness supports export-oriented earnings.
“Mid- and small-caps outperformed, with Nifty Midcap 100 up 1.52% and Smallcap 100 rising 1.29%. Market breadth stayed robust, reflected in a BSE advance-decline ratio of 2.78,” Rajani highlighted.
Technical analysts have shifted to a ‘cautiously bullish’ stance, citing strong price action and improving momentum indicators.
Nifty Prediction for Tuesday, April 7 by Vinay Rajani
Vinay Rajani, Senior Technical Research Analyst – HDFC Securities, noted, “Technically, after an indecisive weekly candlestick pattern, Nifty has attracted follow-up buying.”
Rajani further stated the daily RSI shows double positive divergence, signalling a higher chance of a sustainable uptrend. “The short-term trend has turned bullish, targeting resistance at 23,465, with nearer hurdles at 22,800 and 22,540,” the analyst added.
Nifty Prediction for Tuesday, April 7 by Hitesh Tailor
Hitesh Tailor, Research Analyst – Research at Choice Equity Broking Private Limited, said, “On the daily timeframe, the Nifty50 formed a hammer-like candlestick pattern, indicating positive momentum. This formation reflects strong buying interest during the latter part of the session, with buyers maintaining control. Continuation of this momentum remains possible, provided there is follow-up buying in the next session. However, the significance of this pattern will diminish if the index fails to hold above the day’s low.”
From a technical perspective, he further stated the immediate support for the index is placed in the 22,650–22,700 zone, while resistance is observed in the 23,150–23,200 range. “The Relative Strength Index (RSI) stands at 41.26, suggesting a recovery from the oversold zone. A stronger confirmation of momentum will emerge once the RSI crosses above the midpoint level of 50,” he added.
“The volatility index, India VIX, remained largely unchanged, declining marginally by 0.21% to close at 25.46. In the derivatives segment, notable call writing was observed at the 23,000 strike, followed by the 23,200 strike. On the put side, significant writing activity was seen at the 22,900 and 22,800 strike levels, indicating key support zones,” Tailor further stated.
| 20 Day EMA | 50 Day EMA | 100 Day EMA | 200 Day EMA |
| 23,391.93 | 24,280.35 | 24,801.44 | 24,891.30 |
“The Bank Nifty index opened on a flat note, gaining 198.85 points at 51,747.60, indicating a subdued start to the session. Following the opening, the index experienced profit booking, which dragged it down to an intraday low of 51,111.10. The trend reversed in the second half as strong buying interest emerged at lower levels, resulting in a sharp recovery of 1,593.45 points and pushing the index to an intraday high of 52,704.55. The index ultimately settled in positive territory at 52,609.10, registering a gain of 1,060.35 points or 2.06% for the day,” he noted.
On the daily timeframe, he said the index has formed a consecutive strong bullish candle-like structure, indicating improving sentiment and the presence of sustained buying momentum. “This reflects strengthening confidence among market participants and supports the possibility of continued upward movement, subject to further buying support,” Tailor said.
“From a technical perspective, immediate support is placed in the 52,000–52,100 range, while resistance is observed in the 52,950–53,000 zone. The Relative Strength Index (RSI) stands at 40.47, indicating a recovery from the oversold zone and a gradual move toward the midpoint. A stronger confirmation of upward momentum will be established once the RSI crosses and sustains above the 50 level,” the analyst added.
“Buying momentum has emerged in the index, indicating a positive shift in sentiment. However, amid prevailing global uncertainties, caution remains warranted. Traders should closely monitor the resistance levels and assess price action carefully before anticipating further upside, ensuring that momentum sustains beyond key hurdles,” Tailor concluded.
On Thursday, the 30-share BSE Sensex settled higher by 185.23 points, or 0.25 per cent, at 73,319.55. The Nifty closed at 22,713.10, up by 33.70 points, or 0.15 per cent.
Nifty Prediction for Tuesday, April 7 by Nagaraj Shetti
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, “Nifty witnessed a back-to-back gain for two sessions on Monday and closed the day higher by 255 points. After opening on a positive note, the market showed consolidation with weakness in the early part of the session. It later bounced smartly in the mid to later part of the session.”
He further noted that a long bull candle formed on the daily chart with a lower shadow, indicating a relief rally in the market from the lows. “This market action hints at a possibility of a formation of short-term bottom reversal at the recent swing low of 22182 levels,” he emphasised.
For Tuesday’s trading session, he said, “The short-term trend of Nifty is positive. A sustainable move above the immediate resistance of 23000 levels is likely to pull Nifty towards the next hurdle of 23500 levels in the near term. Immediate support is placed at 22600.”
(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.)
