Technical Outlook: Nifty needs to cross 22,850 for a clear uptrend

After a steep tariff-driven sell-off on Monday, the Nifty 50 bounced back smartly on April 8, gaining 1.7 percent. The rally was supported by short-covering, value buying, and strength in global markets. This sharp rebound broke the index’s three-day losing streak and was backed by above-average trading volumes—an encouraging sign for the bulls.

However, experts believe the 22,850 mark remains a key resistance. This level coincides with the upper end of Monday’s bearish gap and must be crossed decisively for a sustainable uptrend. Until then, market volatility is expected to continue, with 22,000 acting as a strong support.

Key Levels to Watch:

Resistance: 22,850

Support: 22,000 (immediate support at 22,270)

On Tuesday, the Nifty opened higher at 22,447, touched a low of 22,271 and a high of 22,697, before closing at 22,536—up 374 points. The daily chart formed a bullish candlestick with upper and lower shadows, resembling a High Wave pattern. This signals ongoing market indecisiveness and high volatility.

Technical analyst Nagaraj Shetti from HDFC Securities noted that the recent gap-down opening may be acting as a bullish exhaustion gap, hinting at a potential trend reversal. “Such gaps are often seen near important market bottoms and could be filled soon, especially around the 22,850 level,” he said.

Volatility Check: The India VIX—a gauge of market volatility—fell 10.31 percent to 20.44 but remains elevated. Experts say a drop below the 14 level is needed for bulls to truly take control. Until then, cautious optimism is advised.

Options Data Suggests a Range-Bound Market: Options activity indicates Nifty may consolidate between 22,000 and 23,000 in the short term. A breakout on either side could lead to a directional move.

Max Call OI: 23,500, followed by 23,000 and 23,300

Max Put OI: 22,500, followed by 22,000 and 22,200

Max Call Writing: 23,400

Max Put Writing: 22,500

Bank Nifty Outlook: Bank Nifty also rebounded strongly, rising 651 points (1.3 percent) to end at 50,511. It regained key moving averages (20, 50, 100, and 200-day EMAs), indicating renewed strength.

The index formed a long-legged Doji candlestick, signaling market indecision. Still, it managed to close above the previous day’s high—another bullish signal.

Anshul Jain, Head of Research at Lakshmishree Investments, says the next upside target lies near 51,360, the upper end of the gap-fill zone. However, the monthly VWAP and 8-day EMA near 50,950 may act as resistance, possibly triggering some profit booking. “Bulls need to defend this level to maintain momentum,” he added.

Bottom Line:

While Tuesday’s rally was a strong recovery, markets remain on edge. For a sustained uptrend, Nifty must clear 22,850, and India VIX needs to fall below 14. Until then, expect the market to stay choppy.

Disclaimer: Investment views expressed are personal opinions of experts quoted. Always consult a certified financial advisor before making investment decisions.