Trade Setup for April 22: Nifty bulls now eye 25,000 with earnings picking up pace

The Nifty 50 extended its winning streak to a third consecutive session, ending higher after a volatile but upward-biased day.

After a muted start with a marginally positive opening, the index gained momentum in the early to mid part of the session, before moving into a range-bound phase towards the close.

The Nifty advanced over 200 points during the day, supported by a breakout from a brief consolidation phase. It has now rallied nearly 11% from its recent swing low, with the latest close marking the highest level in the current upmove.

On Tuesday, the index settled 211 points higher at 24,576.

Among constituents, Nestle India, Hindustan Unilever and Trent led the gains, while SBI Life Insurance, Bharat Electronics and Dr. Reddy's Laboratories were among the top losers.

Sectorally, most indices ended in the green, barring Nifty Pharma and Consumer Durables. FMCG, Realty and Private Banks led the advances.

Broader markets also participated in the rally, with the Nifty Midcap 100 and Smallcap 100 indices rising 0.49% and 0.88%, respectively, resuming their uptrend.

The Indian rupee weakened for a second straight session, falling 37 paise amid persistent West Asua tensions. The currency came under pressure from a stronger US dollar and volatile crude oil prices, despite supportive domestic equities and steady FII inflows.

On the macro front, India-US trade talks are progressing, with a delegation in Washington between April 20 and 22 to advance the first phase of a bilateral agreement. Both sides have indicated only a few issues remain unresolved, raising expectations of a formal announcement.

Separately, Defence Minister Rajnath Singh is on a three-day visit to Germany, with discussions advancing on a potential ₹70,000-₹99,000 crore deal for six next-generation stealth submarines.

In the near term, key global cues include US retail sales data, UK inflation numbers, and the RBI MPC minutes due on Wednesday. Earnings from SBI Life, Trent, Tech Mahindra, Havells and Oracle are also expected to drive stock-specific action.

Markets are also tracking developments around the upcoming US-Iran talks scheduled later this week, which could trigger volatility in the short term.

Nagaraj Shetti said any negative outcome from the talks could lead to knee-jerk reactions, though sustained strength could push the Nifty towards 24,800-25,000 levels, with immediate support at 24,400.

Rupak De said that sentiment remains positive, although the index is facing resistance around the 100 EMA.

De expects the uptrend to continue towards 24,800 and beyond, with support at 24,400.

Osho Krishan said dips are likely to attract buying interest, reinforcing a buy-on-dips approach. He sees the 24,100-23,900 zone as a strong support area.

Nandish Shah added that the broader trend remains firmly positive, with the index heading towards its 200 DEMA near 24,800, while 24,400 can act as a stop-loss level for existing long positions.

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