Sensex, Nifty outlook for tomorrow: Market bull holds edge; levels to watch on Wednesday

Sensex, Nifty outlook: A sharp late rebound after a gap-down start sent benchmark indices Sensex and Nifty higher on Tuesday, taking their winning streak to the fourth straight session. This was the third straight session when the indices formed bullish candle, and the second day when they formed higher-high higher low formation. Analysts said the trend is positive and further recovery is on the cards.

Sensex settled the day at 74,616.58, up 509.73 points or 0.69 per cent. Nifty, on the other hand, closed the day at 23,123.65, 155.40 points or 0.68 per cent. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities said momentum indicator RSI, which had been languishing below the 40-mark since March 2, has now climbed steadily and stayed above it for two consecutive sessions.

"This is a meaningful development, as the RSI reclaiming the 40 level signals a potential shift in momentum from bearish to neutral territory. Sustained readings above 40 typically indicate that selling pressure is easing and buyers are beginning to assert control, lending further credibility to the ongoing recovery," Shah said.

Sensex outlook April 8

Hitesh Tailor, Research Analyst at Choice Broking said Sensex has continued to exhibit a gradual strengthening with formation of higher highs and higher lows on lower time frames, indicating continuation of the short-term recovery trend. Key technical levels suggest that support is placed in the 74,000–74,200 zone, which is likely to act as a demand area on declines, he said.

Tailor finds resistance at around 75,000–75,350, where upside may face supply and profit-booking pressure. "The near-term outlook remains cautiously positive, with the index showing signs of gradual upside; however, ongoing geopolitical concerns are likely to keep volatility elevated. While intermittent buying may support the market, any sharp upside could face resistance, and swings on either side may persist in the near term," he said.

Nifty outlook for April 8
Rupak De, Senior Technical Analyst at LKP Securities said the near-term sentiment remains positive as the index has closed higher for three consecutive sessions but  uncertainties arising from the West Asia conflict may continue to keep the Indian market volatile.

"On the hourly chart, the index has given a consolidation breakout. Additionally, it has moved above the critical moving average on the lower timeframe, confirming a positive near-term outlook. On the higher end, resistance is placed at 23,200; a decisive move above this level may trigger the next bullish leg towards 23,500–23,800. On the downside, support is placed at 23,000," De said.

Shah of SBI Securities said the immediate resistance for Nifty is placed in the 23,230-232,50 and any sustainable move above the zone could result in Nifty extending its pullback towards 23,400, followed by 23,600 in the short term. He sees the zone of 23,020–230,00 to act as an immediate support.

Angel One sees resistance in the 23,500–23,600 zone, which coincides with a minor swing high on the daily chart, a bearish gap, and the 20 DEMA. On the downside, immediate support is seen near the 23,000 mark, followed by today’s low around 22,700.