Sensex Gain 1,508 Points, Nifty at 23,851; Tomorrow Nifty Prediction

Tomorrow Nifty Prediction

Indian Stock Markets Close with Stellar Gains; Nifty Set to Target 24,200 Next Week

Indian equity markets concluded the mid-week session on April 17 with remarkable gains, powered by broad-based buying across all sectors.

The Nifty 50 index crossed a crucial resistance level of 23,850, closing at 23,851.65, up 414.45 points or 1.77%.

The BSE Sensex also soared, ending 1,508.91 points higher at 78,553.20, a gain of 1.96%. These sharp gains suggest strong investor confidence and technical momentum as the market heads into a long weekend.

Market breadth remained firmly in favor of the bulls, with 2,340 stocks advancing, 1,468 declining, and 149 remaining unchanged on the BSE.

Notably, all sectoral indices closed in positive territory, reinforcing the strength and breadth of the rally.

Sectoral and Stock Highlights

Among the sectoral indices, Telecom, PSU Banks, Oil & Gas, Pharma, Auto, Energy, and Private Banks all posted impressive gains ranging from 1% to 2%.

Midcap and Smallcap indices followed suit with more modest gains of around 0.5%, reflecting balanced participation from both large and mid-sized players.

On the stock front, the top Nifty gainers included Bharti Airtel, ICICI Bank, Bajaj Finance, Sun Pharma, and Eicher Motors. These companies benefited from strong institutional flows and positive sentiment within their respective sectors.

Conversely, Wipro, Hero MotoCorp, Tech Mahindra, Coal India, and JSW Steel were among the top losers, indicating some profit booking or relative underperformance despite the overall bullish mood.

Record-Breaking Weekly Gains

This week marked a significant milestone for the Indian equity markets, as the indices registered their largest weekly gains in over two years.

The Sensex, Nifty, and Midcap indices all posted gains exceeding 4%, while the Nifty Bank surged more than 6%, recording its best weekly performance in nearly two years.

The strong showing was underpinned by robust earnings expectations, positive macroeconomic cues, and strong foreign fund flows.

Realty and Financial indices led the gains among sectoral benchmarks, highlighting growing optimism around rate-sensitive sectors and infrastructure-linked stocks.

The markets will remain closed on Friday, April 18, in observance of Good Friday.

Technical View: Nifty Breakout Signals Further Upside

From a technical standpoint, the Nifty’s decisive breakout above the previous resistance zone of 23,800–23,850 is seen as a key indicator of strength.

According to Ruchit Jain, Lead Research Analyst at Motilal Oswal Financial Services, this move signals the continuation of a bullish trend and opens the possibility for the index to scale new highs in the near term.

Jain emphasizes that the Nifty has now begun forming a pattern of higher highs and higher lows, a classic and reliable indicator of a sustained uptrend.

This pattern hasn’t been observed since October 2023, making the current rally more structurally significant. Jain projects that the Nifty could move toward 24,200 in the upcoming week, provided global cues remain supportive and institutional flows continue.

Additionally, the Bank Nifty, which is currently trading close to its all-time high, continues to provide strong sectoral leadership.

Jain notes that the rally is not just limited to large-cap stocks but is witnessing broad-based participation, which adds credibility to the ongoing uptrend.

Foreign Institutional Investors Return to Indian Markets

A key factor supporting the rally has been the return of foreign institutional investors (FIIs), who had been consistent net sellers in recent months.

According to Jain, there is evidence that FIIs are beginning to reduce their short positions, particularly in index futures.

While the long-short ratio in index futures is currently around 28%, indicating a cautious stance, the potential for short-covering could act as a catalyst for further gains.

As global interest rate expectations stabilize and India continues to offer attractive risk-reward dynamics, FIIs may increasingly reallocate funds to Indian equities, providing further support to the market.

Macro View: India’s Strategic Advantage in Global Trade Tensions

On the macroeconomic front, Kranti Bathini, Director of Equity Strategy at Wealthmills Securities, highlighted India’s relatively favorable position in the face of ongoing global trade tensions, particularly the tariff disputes between the United States and China.

As a consumption-driven economy, India is less vulnerable to trade disruptions compared to export-heavy economies.

Moreover, India’s growing strategic alliance with key Western nations—including the US, UK, Japan, and South Korea—positions it well for potential trade deals that could enhance bilateral commerce and foreign investment.

Bathini noted that if the US prioritizes trade agreements with allies like India, as part of a broader strategy to reduce dependence on China, it could unlock new growth avenues for Indian exporters and manufacturers, especially in sectors like pharmaceuticals, electronics, and defense.

Investor Sentiment and Caution Ahead

While the current rally is backed by strong technical and fundamental cues, analysts advise maintaining a balanced perspective.

Volatility in global markets, uncertainty surrounding central bank policies, and geopolitical developments remain potential risks.

However, with improving macro fundamentals, better-than-expected corporate earnings, and renewed institutional interest, India’s market outlook remains promising.

If the Nifty sustains above 23,850 and Bank Nifty continues its upward momentum, the markets could enter a new leg of the bull run with 24,200–24,300 as the next near-term target range.

Final Remarks

The Indian equity market has delivered a powerful performance this week, setting the stage for potential new highs in the coming sessions.

With strong sectoral leadership, increased foreign inflows, a favorable macroeconomic backdrop, and technical confirmation of a bullish trend, the Nifty appears poised to extend its gains toward 24,200.

As trading resumes after the holiday break, all eyes will be on whether this momentum can be sustained amid evolving global dynamics and earnings season developments.

Investors may consider adopting a selective but optimistic approach, focusing on fundamentally sound sectors like banking, infrastructure, consumption, and pharmaceuticals.