Trade Setup for April 28: Nifty bulls to see first hurdle at 200-DMA on the upside on monthly F&O expiry

The benchmark Nifty 50 index snapped its three-day losing streak on Monday, offering some relief to bulls and signalling a potential shift in near-term momentum.

The index opened 48 points higher on the back of strong global cues and extended gains in early trade. However, it slipped over 130 points after 10 am, before buyers stepped in at lower levels.

A sharp recovery post 11:40 am lifted the index more than 150 points from its intraday low, helping it close near the day's high.

The Nifty 50 ended Monday's session 194 points higher at 24,092.

Among gainers, Sun Pharma, Jio Financial and Reliance Industries led the rally, while Shriram Finance, Axis Bank and BEL were among the top laggards.

Market breadth was firmly positive, with all sectoral indices closing in the green. Pharma, consumer durables, realty and healthcare stocks emerged as the top performers.

Broader markets outperformed the benchmark, with the Nifty Midcap 100 and Smallcap 100 indices rising 1.47% and 1.90%, respectively.

According to Nagaraj Shetti of HDFC Securities, the short-term trend for Nifty appears to have turned positive after the recent correction, with upside levels of 24,500-24,600 likely in the coming sessions. Immediate support is seen at 23,800.

Rupak De of LKP Securities said that the index could face resistance in the 24,115-24,150 zone.

A decisive move above 24,150 would be required for a sustained rally, while a breach below 24,000 may trigger fresh weakness.

Rajesh Bhosale of Angel One said the 23,800-23,700 zone remains a key support area, and dips towards these levels are likely to attract buying interest.

On the upside, the bearish gap in the 24,300-24,400 zone could act as a near-term hurdle.

Bhosale also highlighted that monthly expiry could drive heightened stock-specific activity due to rollovers and position adjustments, suggesting a focus on selective opportunities as the index may remain range-bound.

Meanwhile, the banking index lagged the broader market. The Bank Nifty continued to show indecisive price action and is currently hovering near its 50-day EMA.

Sudeep Shah of SBI Securities said the 56,600-56,700 zone, where the 200-day EMA is placed, will act as a key resistance.

Shah said that a sustained move above 56,700 could push the index towards 57,200. On the downside, immediate support is seen in the 55,700-55,600 range near the 20-day EMA.

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