The Indian stock market is poised for a positive opening on Monday, April 28, 2025, with global market cues signaling optimism. The Gift Nifty, an early indicator of the Nifty 50’s movement, was trading at 24,259, suggesting a premium of about 120 points compared to the Nifty futures’ previous close. This positive trend on the Gift Nifty suggests that the Nifty 50 and Sensex could see a strong start to the trading day.
Strong Global Cues to Boost Market Sentiment
Despite a relatively weak performance in the domestic market on Friday, where both the Sensex and Nifty 50 ended in the red, the outlook for Monday remains positive due to gains in global markets. On Friday, the Sensex dropped by 588.90 points, or 0.74%, closing at 79,212.53, while the Nifty 50 fell 207.35 points, or 0.86%, settling at 24,039.35. This profit booking on Friday was largely attributed to a correction after recent market highs, but the global markets’ momentum has given traders fresh optimism.
Global indices such as the Dow Jones, Nasdaq, and FTSE saw strong performances, which have positively influenced investor sentiment. Additionally, investor confidence in India has been bolstered by signs of sustained economic recovery and strong corporate earnings growth, particularly in sectors like digital services, retail, and oil-to-chemicals.
Technical Indicators and Market Predictions
While the broader sentiment is positive, technical charts are showing mixed signals. The Nifty 50 formed a bearish candlestick pattern on the daily chart on Friday, signaling some short-term weakness. However, the index also exhibited a higher high and higher low formation, suggesting that the market is still in an uptrend. This indicates that despite the temporary pullback, the underlying market trend remains positive for now.
The Sensex, too, faced a similar situation. It breached the 79,300 support zone on Friday and slipped below the 200-day Simple Moving Average (SMA), creating a reversal formation on the daily charts. The weekly candlestick pattern of a shooting star also points to some weakness in the short term. However, this is not necessarily a sign of a prolonged downturn. Market participants should keep an eye on the psychological support levels around 79,000 for potential rebounds.
What to Watch for in the Market Today
Key Levels for Nifty 50 and Sensex
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Nifty 50: The index is expected to find support around 24,000, with resistance likely near 24,300. If it breaches the 24,300 level, it could move towards the 24,500 mark.
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Sensex: The next major support zone for Sensex is seen at 79,000, with resistance at 79,500. A clear breakout above this level could lead the index higher.
Bank Nifty Outlook
The Bank Nifty, a crucial indicator of the banking sector’s performance, is also expected to open higher today, tracking the positive cues from global markets. The banking index had a slight pullback on Friday, but it remains within a bullish range. Traders will look for signs of a rebound from the 55,000 support zone, with resistance around 56,000.
Stocks to Watch
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Reliance Industries: Following a strong earnings report, Reliance’s stock is expected to continue its positive momentum.
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HDFC Bank: With banking stocks in focus, HDFC Bank’s movement could influence the overall market sentiment.
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IT Stocks: Stocks like TCS and Infosys, which have been performing well, could lead the Nifty’s charge today.
The Indian stock market is likely to witness a positive start today, driven by favorable global cues. However, technical indicators show some signs of short-term weakness, so traders should watch for key support and resistance levels. While the market may face some volatility in the coming sessions, the broader outlook remains optimistic, especially given strong earnings and continued economic recovery in India.
