Trade Setup for April 23: Nifty eye 24,500 as Wall Street rebound gains momentum

The Nifty 50 index continued its strong performance, extending its winning streak to six consecutive sessions with a gain of 42 points, closing at 24,167. The index has surged by an impressive 2,500 points from its low of 21,743, registered on April 7, 2025.

The Nifty Bank index also hit a new record high for the second consecutive session, continuing the positive momentum.

Market Highlights:

Top Gainers:

Manaksia Steels: ₹60.18 (+20.00%)

Agri-Tech (India): ₹172.89 (+20.00%)

Rajratan Global Wire: ₹390.15 (+19.99%)

Vaswani Industries: ₹46.90 (+19.98%)

Indowind Energy: ₹21.68 (+19.98%)

Broader market indices also continued their upward trajectory. The Nifty Midcap 100 index rose by 0.78%, and the Nifty Small-cap 100 index gained 0.73%.

Banking giants such as HDFC Bank, ICICI Bank, and Kotak Mahindra Bank saw continued buying interest, while metal stocks were buoyed by a government-imposed 12% safeguard duty on five steel product categories. FMCG stocks showed sharp rebounds due to expectations of improving rural demand ahead of the monsoon season.

Shares of IndusInd Bank slipped by 5% amid reports of the bank appointing Ernst & Young (EY) to investigate a ₹600 crore discrepancy, although the bank has denied these claims, stating no forensic audit is underway.

Market Outlook for April 23: As market attention shifts towards upcoming earnings reports from companies like LTIMindtree Ltd, Tata Consumer Products Ltd, and Bajaj Housing Finance Ltd, analysts expect continued market optimism. The release of HCL Technologies' earnings after market hours on April 22 could also influence the Nifty IT index's performance.

Meanwhile, US stock markets saw a recovery on April 22, with the Dow Jones gaining 677 points (+1.8%), the S&P 500 up 1.7%, and the Nasdaq climbing 1.9%, as traders sought to recover after previous losses.

Foreign investors remained net buyers in the cash market, while domestic investors were net sellers on Tuesday.

Siddhartha Khemka of Motilal Oswal believes that the gradual upward momentum will persist, supported by hopes of a Bilateral Trade Agreement between India and the US, sustained FII buying, and favorable RBI policies.

Nifty 50 Technical Outlook: Despite the Nifty closing with a small-bodied, indecisive candle, the index remained above the 200-day moving average (DMA), which is a positive sign. Going forward, analysts remain optimistic, with the index aiming for a possible move towards 24,500, as long as it stays above the 24,000 level.

Rupak De, Senior Technical Analyst at LKP Securities, indicated that a break below 24,000 could trigger a minor pullback. However, as long as the index remains above this level, the short-term bullish outlook will stay intact.

OM Mehra from SAMCO Securities added that while the broader trend remains bullish, occasional dips are likely. A decisive move above 24,270 would confirm the trend continuation and open the path for a fresh positive outlook.

Nifty Bank Technical Outlook: The Nifty Bank index reached a new all-time high of 55,961.20 and closed at 55,647.20, up by 0.62% for the day. The relative strength index (RSI) remains elevated near 75 but has not yet entered the overbought zone (80).

Mehra noted that the gap between current levels and the 9-day exponential moving average (EMA) suggests a potential mean reversion in the near term. However, any pullback should be viewed as a normal pause in the broader bullish trend, not a reversal.

He also pointed out that a clear break above 56,300 is required to regain momentum. Until then, a cautious stance would be advisable.