Trade Setup for April 3: Nifty holds above 9-EMA and 50-EMA, signals strength

After two days of losses, the Nifty 50 saw a solid recovery on Wednesday, gaining 167 points to close at 23,332. The market opened strong and maintained its upward momentum throughout the session, driven by broad-based buying across sectors.

However, all eyes are now on US President Donald Trump's upcoming tariff decision on India, which could trigger a sharp market reaction on Thursday—either way.

Market Highlights:

Midcap & Smallcap Surge: The Nifty Midcap 100 rose 1.61%, while the Nifty Smallcap 100 gained 1.12%, outperforming the broader market.

Sectoral Strength: All sectoral indices closed in the green, led by Realty (+3.6%), Consumer Durables, and FMCG. Realty stocks gained on expectations of an RBI rate cut next week.

Top Gainer: Tata Consumer Products soared 7% after Goldman Sachs upgraded its rating to ‘Buy’ with a revised target of ₹1,200.

PSU Banks Struggle: Punjab & Sind Bank and Central Bank fell 10-12%, while Indian Overseas Bank dropped 4.5%, extending losses after recent QIP fundraises.

Technical Outlook:

Nifty is holding above its 9-EMA and 50-EMA, signaling strength.

Immediate support is at 23,100, with resistance at 23,520-23,600.

A buy-on-dips strategy is advised as the market maintains higher highs.

Nifty Bank Update:

Closed at 51,348 (+1.02%), rebounding within a tight 50,700 - 51,900 range.

Breakout above 51,900 needed to resume the uptrend.

Stocks to Watch:

Bharat Electronics: Signed a ₹593.22 crore contract with the Indian Air Force for Akash Missile System maintenance.

Maruti Suzuki: Price hike across 7 models from April 8, citing rising costs.

Central Bank of India: Total business grew 10.75% YoY to ₹7.05 lakh crore.

Bajaj Healthcare: CFO Dayashankar Patel resigns, effective April 15.

Key Takeaway:

Nifty’s rebound shows strength, but Trump’s tariff decision will dictate the next big move. Stay cautious and watch for volatility in Thursday’s session.