Nifty 50 Outlook for 21/04/2024

Current Levels: Around 23,850–23,900

Resistance Levels: 23,893, 24,029, and 24,248

Support Levels: 23,455, 23,320, and 23,101

Key Resistance: The critical resistance is near 24,000, which aligns with the 50% Fibonacci retracement from the September 2024 high to the April 2025 low. A breakout above this level could open the way toward 24,200.

Key Support: Strong support is expected in the 23,650–23,550 zone in the short term.

Technical Indicators

The Nifty formed a robust bullish candle on the daily chart with above-average volumes, trading near the upper Bollinger Band.

Momentum indicators are positive: RSI is above 60 (around 62.5), and MACD shows a healthy positive crossover.

The India VIX has declined sharply, indicating reduced volatility and supporting the bullish trend.

Options Market Data

Maximum Call open interest is at the 25,000 strike (79.54 lakh contracts), followed by 24,000 and 24,500 strikes, indicating resistance around these levels.

Maximum Put open interest is at the 23,500 strike (83.91 lakh contracts), followed by 23,000 and 23,300 strikes, suggesting strong support around 23,500.

Sectoral and Market Drivers

Banking stocks continue to lead the rally, with Bank Nifty near all-time highs.

Positive global cues, easing inflation data, and a normal monsoon forecast are supporting hopes of RBI rate cuts.

Foreign portfolio inflows remain robust, further bolstering market sentiment.

Trading Strategy for 21 April 2024

Long positions can be maintained above 23,800 with a stop-loss near 23,300.

Watch for a breakout above 24,000 for fresh buying opportunities targeting 24,200–24,300.

Use dips near support levels (23,650–23,550) as buying opportunities.

Monitor global developments and RBI policy announcements, as these could influence intraday volatility.

This outlook is based on current technical setups, options data, and market sentiment, indicating a cautiously optimistic day for Nifty with potential to test and possibly breach the 24,000 mark.