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Nifty 50 Prediction for Monday, April 27 by experts: The domestic equity markets are likely to remain under pressure as trading resumes on Monday, April 27, with the technical indicator pointing to continued weakness in the Nifty50 after a bruising session on Friday.
The Nifty 50 index closed at 23,897.95, declining by 275.10 points or 1.14 per cent. With the decline, the index recorded its first single-session drop exceeding 1 per cent this month, cementing a weak short-term trend.
The markets came under strong selling pressure on Friday, weighed down by a surge in crude oil prices and heavy losses in IT stocks, with benchmark indices ending sharply lower.
The markets witnessed a weak start, with the Nifty opening gap-down for the second consecutive session. Selling pressure persisted throughout the day, with sellers remaining firmly in control. The trend may persist on Monday, due to which the experts have advised the investors to stay cautious.
Nifty 50 Prediction for Monday, April 27 by experts
Technical analysts warned that the index has breached critical support levels, shifting the momentum firmly into the hands of the sellers.
Nifty 50 Prediction for Monday, April 27 by Nagaraj Shetti
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted that Friday’s session resulted in the formation of a “long bear candle” on the daily chart, signalling the strengthening of the downward trend.
Shetti said, “The downside momentum continued in the market for the third consecutive sessions on Friday and the Nifty closed the day lower by 275 points on the backdrop of sharp decline in IT sector. After opening on a negative note, the market continued with weak trend for better part of the session. Minor recovery attempt of mid to later part was failed to sustain and Nifty finally closed at the lows.”
He further stated, “A long bear candle was formed on the daily chart, which signals strengthening of downside momentum in the market. The immediate support of 10-and 20-day EMA has been broken on the downside and the support of previous opening up gap of15th April has been filled completely and no reasonable bounce back was seen.”
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Nifty50 Daily Chart, April 24
“The underlying short-term trend of Nifty continues to be weak. Further declines from here could drag Nifty down to the next support of 23500 in the short term. Immediate resistance is placed at 24100 levels,” the analyst concluded.
Nifty 50 Prediction for Monday, April 27 by Nandish Shah
Echoing similar sentiments, Nandish Shah – Deputy Vice President, HDFC Securities, highlighted that the index has now broken below its 20-day Exponential Moving Average (EMA).
“Short term trend of the Nifty turned weak, with the index closing below its 20-day EMA placed at 22937. Next support placed at 23790, followed by 23550. On the higher side, 24200 is the level to watch out for the bullish trend reversal,” Shah said.
“Nifty extended its losing streak to three days amid broad-based selling, spearheaded by IT stocks. Nifty opened with a 73-point gap down, weighed by souring global sentiment and a sharp rise in crude oil prices. The selling pressure remained relentless throughout the day until a minor recovery in the final hour saw the Nifty bounce 100 points off its lows. Despite the late recovery, the Nifty 50 closed 275 points lower at 23,897, culminating in a weekly loss of 1.90%. NSE cash turnover dipped 3% compared to the previous session,” Shah noted.
Selling was across the board with every sectoral index ending in the red; Nifty IT, Media, and Pharma hit hardest. Nifty IT Index plunged over 5% on the back of disappointing quarterly earnings and cautious growth forecasts from heavyweights like Infosys, he added.
“The Indian rupee has hit a rough patch, falling for five straight days and seeing its biggest weekly drop since September 2022. The currency is being squeezed by rising oil prices and a shift in investor sentiment, as Foreign Institutional Investors (FIIs) resume selling after a brief hiatus,” Shah concluded.
Sectoral indices on Friday, April 24
Sectoral indices on the NSE reflected broad-based weakness, with all sectors closing in the red. The Nifty IT index was the worst performer, declining by more than 5 per cent, followed by Nifty Metal, which fell by 1.87 per cent, Nifty Pharma down by 1.77 per cent, Nifty Auto declining by 0.68 per cent, and Nifty PSU Bank slipping by 0.15 per cent.
Market experts attributed the sharp fall to rising geopolitical tensions and external pressures.
Meanwhile, crude oil prices remained a key concern for investors. Brent crude surged above USD 107 per barrel, driven by ongoing tensions in West Asia and the continued blockade of the Strait of Hormuz.
(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.)
