Markets Fire Back — But is it Sustainable?

 In a powerful session, both indices surprised with a sharp gap-up. While global cues and short covering justified a positive open, the magnitude of the move was eye-catching.

Nifty Analysis
Nifty surged 2.19% to close at 23328. But the move came right into its 100-day SMA — a key technical level — where it also printed a Hanging Man candle. This classic pattern often warns of potential exhaustion at the top.

Open Interest for Nifty Futures dropped by 5.2%, indicating short covering. PCR readings remain neutral at 0.69 near ATM and 0.8 overall.

Support is now seen at 23300, with resistance at 23500.

The outlook? Neutral to slightly bullish. The bulls have control, but caution is warranted. If today's session confirms the Hanging Man, a dip may follow. If not, momentum may continue.

Bank Nifty Analysis
The banking index closed at 52379, up 2.70% — forming a strong bullish candle and moving within an upward channel.
Bank Nifty Futures saw a rise in OI by 3.05%, signaling long buildup.
This is a healthy setup, and any dip within the channel could be a buying opportunity. A breakout above 52700 would solidify the bullish narrative.

As we track the price action today, keep an eye on confirmation signals — especially from Nifty at the 100-SMA zone.

📎 Check our previous analysis for 15 April 2025 — where we flagged bullish setups building up through short covering and long buildup.