NIFTY Index Chart Analysis

The Nifty 50 snapped its two-week winning streak last week, ending lower by 1.87 per cent amid profit booking in IT stocks and elevated crude oil prices, as the US-Iran situation remained unresolved. The pressure was more visible in the Nifty IT index, which declined nearly 10 per cent in a week. Muted Q4FY26 earnings, cautious growth guidance, slower client spending, delayed decision-making and weaker deal momentum weighed on the sector.[EasyDNNnews:PaidContentStart]

However, the new week began on a positive note. The Nifty reclaimed the important psychological level of 24,000, while India VIX cooled off from higher levels. More importantly, broader markets participated in the recovery, leading to an improvement in market breadth.

On Monday, the index ended its threeday losing streak and closed higher by 0.81 per cent. On the daily chart, the Nifty formed a bullish-bodied candle. However, it traded within the range of the previous session, resulting in an inside candle formation.

This suggests that while buying interest has returned, the index is yet to display decisive strength. It continues to trade below its immediate resistance zone, making follow-through buying crucial from here.

A key takeaway from Monday’s session was the strong buying demand seen near the short-term 20-day EMA and the important gap zone of 23,900–24,145. This indicates that buyers are still willing to step in at higher levels.

Going forward, a sustained move above Friday’s high of 24,206 would confirm the end of the recent three-session corrective phase. Until that happens, the index may continue to consolidate within a broader range of 23,400–24,200, while reacting to geopolitical developments and the ongoing corporate earnings season.

The zone of 24,220–24,320 is likely to act as the immediate resistance area, as the 50-DMA is placed around this range. A sustained move above this zone could help the index form a higher low on the daily chart. In that case, Friday’s swing low of 23,814 would become an important higher-low point.

For now, 23,814 remains the crucial support level, while 24,220–24,320 is the key resistance zone for the Nifty

If the index breaches 23,814, the next important support is placed around 23,400. This level coincides with the 50 per cent Fibonacci retracement of the current up move from 22,183 to 24,602, along with the gap area of 23,555– 23,154.

On the upside, a sustained move above 24,220–24,320 could open the door for a further rally towards 24,700–24,800.

The 14-period daily RSI has moved above the 50 mark, indicating some improvement in momentum. However, the hourly RSI continues to remain below 50, suggesting that short-term strength is not yet fully established.

Overall, April has been a strong month for the Nifty 50, with the index gaining nearly 8 per cent so far.

For the fortnight, market participants should adopt a cautious and defensive approach. Fresh aggressive buying should be avoided until the index shows signs of sustaining above key resistance levels.

The focus should remain on capital protection and selective stock-specific opportunities rather than broad-based exposure. Traders should stay nimble, follow stop losses strictly and avoid over-leveraging, as the market is likely to remain volatile and range-bound in the near term.

STOCK RECOMMENDATIONS
ASTER DM HEALTHCARE LTD. ...................... BUY ................... CMP ₹719.80
BSE Code : 540975
Target 1 .... ₹790 
Target 2 ..... ₹810 
Stoploss....₹670 (CLS)

Aster DM Healthcare is one of India’s largest healthcare service providers, with a strong presence across primary, secondary, tertiary and quaternary care. The company operates 20 hospitals with 5,451 beds, along with 10 clinics, 203 pharmacies operated by Alfaone Retail Pharmacies Private Limited under brand licence from Aster, and 302 labs and patient experience centres across five states in India.

From a technical perspective, the stock has closed above the pivot point of a 22-week cup-and-handle like pattern and has also registered a fresh high close. Its Relative Strength line is at a new high, indicating clear outperformance. Volumes have remained elevated over the last five weeks, adding strength to the price action. The stock is trading well above all key moving averages, and these averages are also trending upward. The weekly Bollinger Bands are expanding, while the 20-DMA remains in an uptrend. The stock is currently trading 9.7 per cent above its 50-DMA, and the moving average ribbon continues to support the broader uptrend. Momentum indicators are also aligned in favour of the bulls. The MACD has generated a fresh bullish signal, while the RSI has shifted into the bullish zone across multiple time frames. The KST has also flashed a fresh bullish signal, and the Stochastic RSI remains positive. The Elder Impulse system has formed a strong bullish bar, further confirming strength in the setup. In short, the stock appears well-positioned for a bullish breakout. On the upside, it can test ₹790, followed by ₹810. A stop loss may be maintained at ₹670.

NESTLE INDIA LTD. ................................... BUY .................... CMP ₹1,416.30
BSE Code : 500790
Target 1 ...... ₹1,510 
Target 2 ..... ₹1,540 
Stoploss.....₹1,337 (CLS)

Nestlé India is a subsidiary of Switzerland-based Nestlé S.A. With nine manufacturing facilities, a wide network of co-packers and a strong distribution reach, the company offers Indian consumers a broad portfolio of globalstandard products. Its key brands include Maggi noodles and sauces, Nescafé coffee, KitKat and Munch chocolates, Milkmaid dairy products, Cerelac infant nutrition, Everyday dairy whitener and Nestea. The stock has witnessed a breakout from an over two-year consolidation pattern on the weekly time frame, supported by above-average volumes. Technically, Nestlé India is comfortably placed above its key moving averages, reflecting strength in the broader structure. From an O’Neil Methodology perspective, the stock meets most of the key criteria. It has an EPS Rank of 82, which is considered a good score and reflects consistency in earnings. Its RS Rating stands at 79, which is fair but improving, indicating better recent price performance. Buyer Demand is rated A, supported by visible accumulation in recent sessions. The weekly RSI is in the bullish zone and has moved above its prior swing high. The weekly MACD histogram is showing rising bullish momentum. At the same time, the +DMI is moving higher and remains above both the -DMI and the ADX line, indicating improving trend strength. Overall, the setup looks attractive. On the upside, the stock has the potential to test ₹1,510 to ₹1,540. A stop loss may be kept at ₹1,337.

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