Sensex, Nifty outlook for tomorrow: Stock market strategy; resistance, support levels
Stock market strategy: Timing the market is very difficult. Investing when risk-reward is favorable is likely to be more fruitful, said Vinay Paharia, CIO at PGIM India Mutual Fund.
- Apr 8, 2026,
- Updated Apr 8, 2026 5:46 PM IST
Thanks to the announcement of US-Iran two-week ceasefire, the NSE Nifty on Wednesday settled just shy of 24,000 level while the BSE Sensex soared over 2,900 points to settle at 77,562.90 level. The two indices have rallied 7.4-7.8 per cent over the past five sessions, as geopolitical tensions ease and oil futures tumble on prospects of reopening of Strait of Hormuz. Can the two indices take their winning streak to the sixth session?
Sensex outlook The BSE Sensex ended the day at 77,562.90, surging 2,946.32 points or 3.95 per cent. The index opened with a strong gap-up and maintained a steady upward momentum throughout the session, with sustained buying interest and minimal intraday corrections, reflecting strong bullish dominance. Hitesh Tailor, Technical Research Analyst at Choice Equity Broking said key technical levels suggest that support for Sensex placed in the 76,800–77,000 zone, which is likely to act as a demand area on declines. This analyst sees resistance at 78,000–78,300, where upside may face initial supply pressure.
"The near-term outlook remains positive, supported by strong momentum; however, after such a sharp rally, some consolidation or volatility may emerge, especially considering ongoing geopolitical developments," Tailor said.
Nifty outlook Nifty closed the day at 23,997.35, up 873.70 points or 3.78 per cent. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities the opening upside gap remains unfilled and Nifty finally closed at the highs. The formation of the huge unfilled opening upside gap indicates a formation of Bullish Breakaway Gap, which reflects a formation of important bottom reversal for the market at the recent swing low of 22,182 hit on April 2.
"The overall chart pattern is positive and if this gap remains unfilled for the next 3-4 sessions, then that could suggest broad based rally for the markets ahead. The next upside levels to be watched around 24,500. Immediate support is placed at 23,800 levels," he said.
Rupak De, Senior Technical Analyst at LKP Securities said Nifty reclaimed the 200SMA on the hourly chart, after closing above the 50SMA in the previous session. The sentiment going forward may remain positive, with the Nifty potentially moving towards 24,265, which is a crucial resistance level where the index may once again face selling pressure, De said.
"Going ahead, the immediate resistance for Nifty is placed in the 24,150-24,200 zone. Any sustainable move above this zone could result in Nifty extending its pullback towards 24,400, followed by 24,600 in the short term. On the downside, the zone of 23850–23800 zone is likely to act as an immediate support," said Sudeep Shah of SBI Securities.
What's next? Ajay Menon, MD & CEO – Wealth Management at Motilal Oswal Financial Services said the near-term outlook remains positive, supported by stable macros, improving sentiment, and liquidity conditions. However, the sustainability of the rally will depend on progress in geopolitical negotiations, easing of supply disruptions, and normalisation of energy shipments, he said.
"Movements in crude oil prices, the rupee, and FII flows will remain key determinants of near-term market direction," Menon said.
Vinay Paharia, CIO at PGIM India Mutual Fund said the past few months saw a macro stress test - combining oil shock, capital outflows, currency pressures, AI related growth pangs and growth downgrades in a short span. But he believes, many of these being transitory and would resolve itself with passage of time, even as timelines stay uncertain.
Paharia said this has resulted in a meaningful correction in the markets and much of the froth in valuations, which was built has been take away.
"Largecaps and Smallcaps are now trading very close to their longer term averages in terms of valuation and risk-reward is much more balanced than before. However, Midcaps are still trading at moderately rich valuations and are hence less preferred compared to large caps and small caps. We believe, it is good time to increase allocation to Indian equities," he said.
Paharia said timing the market is very difficult and investing when risk-reward is favorable is likely to be more fruitful.
Thanks to the announcement of US-Iran two-week ceasefire, the NSE Nifty on Wednesday settled just shy of 24,000 level while the BSE Sensex soared over 2,900 points to settle at 77,562.90 level. The two indices have rallied 7.4-7.8 per cent over the past five sessions, as geopolitical tensions ease and oil futures tumble on prospects of reopening of Strait of Hormuz. Can the two indices take their winning streak to the sixth session?
Sensex outlook The BSE Sensex ended the day at 77,562.90, surging 2,946.32 points or 3.95 per cent. The index opened with a strong gap-up and maintained a steady upward momentum throughout the session, with sustained buying interest and minimal intraday corrections, reflecting strong bullish dominance. Hitesh Tailor, Technical Research Analyst at Choice Equity Broking said key technical levels suggest that support for Sensex placed in the 76,800–77,000 zone, which is likely to act as a demand area on declines. This analyst sees resistance at 78,000–78,300, where upside may face initial supply pressure.
"The near-term outlook remains positive, supported by strong momentum; however, after such a sharp rally, some consolidation or volatility may emerge, especially considering ongoing geopolitical developments," Tailor said.
Nifty outlook Nifty closed the day at 23,997.35, up 873.70 points or 3.78 per cent. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities the opening upside gap remains unfilled and Nifty finally closed at the highs. The formation of the huge unfilled opening upside gap indicates a formation of Bullish Breakaway Gap, which reflects a formation of important bottom reversal for the market at the recent swing low of 22,182 hit on April 2.
"The overall chart pattern is positive and if this gap remains unfilled for the next 3-4 sessions, then that could suggest broad based rally for the markets ahead. The next upside levels to be watched around 24,500. Immediate support is placed at 23,800 levels," he said.
Rupak De, Senior Technical Analyst at LKP Securities said Nifty reclaimed the 200SMA on the hourly chart, after closing above the 50SMA in the previous session. The sentiment going forward may remain positive, with the Nifty potentially moving towards 24,265, which is a crucial resistance level where the index may once again face selling pressure, De said.
"Going ahead, the immediate resistance for Nifty is placed in the 24,150-24,200 zone. Any sustainable move above this zone could result in Nifty extending its pullback towards 24,400, followed by 24,600 in the short term. On the downside, the zone of 23850–23800 zone is likely to act as an immediate support," said Sudeep Shah of SBI Securities.
What's next? Ajay Menon, MD & CEO – Wealth Management at Motilal Oswal Financial Services said the near-term outlook remains positive, supported by stable macros, improving sentiment, and liquidity conditions. However, the sustainability of the rally will depend on progress in geopolitical negotiations, easing of supply disruptions, and normalisation of energy shipments, he said.
"Movements in crude oil prices, the rupee, and FII flows will remain key determinants of near-term market direction," Menon said.
Vinay Paharia, CIO at PGIM India Mutual Fund said the past few months saw a macro stress test - combining oil shock, capital outflows, currency pressures, AI related growth pangs and growth downgrades in a short span. But he believes, many of these being transitory and would resolve itself with passage of time, even as timelines stay uncertain.
Paharia said this has resulted in a meaningful correction in the markets and much of the froth in valuations, which was built has been take away.
"Largecaps and Smallcaps are now trading very close to their longer term averages in terms of valuation and risk-reward is much more balanced than before. However, Midcaps are still trading at moderately rich valuations and are hence less preferred compared to large caps and small caps. We believe, it is good time to increase allocation to Indian equities," he said.
Paharia said timing the market is very difficult and investing when risk-reward is favorable is likely to be more fruitful.