Market Wrap

Indian equity markets extended their recovery for the second consecutive session on 7 April, with the Nifty gaining over 1% and closing just below the 23,000 mark. The rebound was supported by broad-based buying as investors returned to accumulate quality stocks following the recent correction, indicating improving risk appetite in the near term.

Sectorally, PSU banks led the rally, bouncing sharply from their 200-day moving average support. Momentum indicators also turned favorable, with RSI signaling a fresh buy from oversold territory suggesting that the recent pullback may have created a base for further upside. Other sectors also participated, reflecting a gradual return of confidence across the market.

Despite the positive domestic momentum, global cues remained mixed. Asian and European markets traded cautiously amid persistent geopolitical tensions in the Middle East. However, sentiment improved during the session on hopes of a potential ceasefire, helping sustain gains, though uncertainty continues to linger.

What's Ahead

Markets are likely to remain highly event-driven in the near term, with global developments taking center stage. Investors will closely watch the upcoming remarks from Donald Trump, where any signals of escalation or de-escalation in geopolitical tensions could significantly influence global risk sentiment. A ceasefire could trigger a strong rally, while continued tensions may lead to volatility.

On the domestic front, focus will shift to the Reserve Bank of India’s policy decision on 8 April. Commentary on interest rates, inflation trajectory, and growth outlook will be key for market direction. Additionally, weekly expiry could amplify short-term swings, with Nifty’s immediate support seen at 22,700–22,800 and resistance around 23,100–23,170.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 extended its recovery for the third consecutive session, closing near the day’s high and indicating strengthening bullish sentiment after recent weakness. The index witnessed broad-based buying supported by financial heavyweights and short covering, while the RSI moving above the 40 mark suggests a gradual improvement in momentum. Price action indicates that the index is attempting to form a near-term base, though it still needs to sustain above key resistance zones for a stronger trend confirmation. Immediate support is placed at 22,572 followed by 22,327, while resistance is seen at 23,365 and 23,610, where selling pressure may re-emerge.

Bank Nifty

The NIFTY BANK outperformed the broader market with a strong 2% gain, closing near its intraday high and reflecting sustained buying interest across both PSU and private banks. After an initial dip due to profit booking, the index showed resilience and gained momentum in the latter half, signaling strong underlying strength. The RSI trending higher near the 40 level indicates improving momentum, suggesting potential continuation of the upmove if supported by follow-through buying. Key support levels are placed at 51,288 and 50,470, while resistance is seen at 53,931 and 54,748.

Nifty Financial Services

The NIFTY FINANCIAL SERVICES witnessed a sharp upmove, supported by broad-based participation across NBFCs, banks, and insurance stocks, indicating strengthening sectoral momentum. The rally reflects renewed investor confidence in financials, with heavyweights contributing significantly to the upside. Despite minor declines in a few stocks, the overall structure remains positive, suggesting accumulation at lower levels. Technically, the index appears to be regaining strength, and sustaining above current levels could lead to further upside. Immediate support is placed at 25,986 and 25,477, while resistance is seen at 27,629 and 28,138.

Sensex

The BSE SENSEX staged a solid recovery after early volatility, supported by strong buying across heavyweight stocks and positive market breadth. The index’s ability to close higher despite pressure from select heavyweights like Reliance highlights underlying strength in the broader market. The current price structure suggests a continuation of the pullback rally, with momentum likely to remain positive as long as key supports hold. Immediate support is placed at 72,820 followed by 72,023, while resistance is seen at 75,394 and 76,190, which could act as near-term hurdles for further upside.