Trade Setup for April 17: Nifty poised to hold above 23,500, backed by FII buying

The Nifty 50 extended its rally for the third straight session on Wednesday, closing at a two-week high. After breaching the key 200-day EMA at 23,360, the index settled at 23,437, up 109 points, driven by strong recovery from early losses and supported by continued foreign fund inflows.

Key Market Highlights

The market opened weak but rebounded smartly, powered by gains in banking, media, and oil & gas stocks.

Axis Bank, IndusInd Bank, and HDFC Bank were among the top Nifty contributors.

PSU Banks led the rally, while Auto, Pharma, and Healthcare stocks ended lower.

The total market capitalisation of BSE-listed firms rose by ₹3 lakh crore to ₹415 lakh crore.

Electric Bus Makers Surge

JBM Auto Ltd. and Olectra Greentech Ltd. shares jumped 10% amid optimism around a government tender for 10,000 electric buses under the PM E-drive scheme, expected next month.

Positive Economic Cues

Investor sentiment was lifted by March CPI inflation, which cooled to a six-year low of 3.34%, down from 3.61% in February. Additionally, FIIs turned net buyers for the first time in April, investing over ₹6,000 crore on Tuesday.

Technical View

Analysts remain bullish, with the Nifty maintaining its upward bias:

Nagaraj Shetti (HDFC Securities): The index, having crossed the 200-day EMA, could move towards 23,870 in the near term. Support lies at 23,270.

Rupak De (LKP Securities): Support now stands at 23,300. A break below this level may lead to a fall towards 23,150-23,000, while resistance is seen at 23,650.

Earnings to Watch

Investors will eye earnings from Infosys, Jio Financial Services, HDFC AMC, HDFC Life, and Tata Elxsi on Friday.

Wipro’s numbers, announced post-market on Wednesday, may weigh on sentiment on Thursday:

The IT major reported a 1.2% constant currency revenue decline for the March quarter, missing its guided range of -1% to +1%.

For Q1 FY26, Wipro expects revenue between $2,505 million and $2,557 million, implying a decline of 1.5% to 3.5% sequentially in constant currency terms.

Global Watch

Market participants will also track comments from the US Federal Reserve for insights on interest rates, trade tariffs, and economic direction. Progress in US-India trade talks has lent additional support, though ongoing US-China tariff tensions could bring bouts of volatility.