Nifty Surges to Eight-Day High, Nears Critical Resistance Level

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Stock Market Soars: PSU Banks, Energy Stocks Drive Today’s Rally

By S Jha

New Delhi, April 16, 2025: The Nifty 50 extended its upward momentum on Tuesday, gaining 0.47% (+108 points) to close at 23,398 — its highest level in eight sessions. The rally came on back of strong buying in the second half of the trading day and broad-based market participation.

“On the technical front, the index remains within a ‘Falling Channel’ pattern and is now inching closer to the upper boundary at 23,600–23,700, a crucial resistance zone just below the March swing high of 23,869,” said Angel Broking in a post-market note to clients on Wednesday.

Analysts advised caution at current levels, suggesting that traders should wait for intraday dips or a consolidation phase before initiating fresh long positions, added the brokerage firm.

“The daily chart reflected a continuation of buying interest near intraday lows, as seen through consecutive long lower shadows — a sign of sustained dip-buying,” added the brokerage firm in its note.

Sectoral Overview: PSU Banks, Energy Shine

A standout performance was seen in PSU Banks, Oil & Gas, and Energy stocks, with strong price and volume breakouts hinting at further upside in the near term, said Angel Broking in its note. In contrast, it added, Auto, Pharma, and Healthcare sectors witnessed profit-booking and ended in the red.

Market Breadth & Participation

Market breadth remained robust, said the brokerage firm, as 33 out of Nifty 50 constituents ended in the green. Also, 357 out of Nifty 500 stocks posted gains.

This reflects strong participation across the broader market spectrum, added the brokerage firm.

Momentum Indicators: Improving Sentiment

Angel Broking further said that “60 per cent of Nifty 500 stocks are now trading above their 50-day EMA while 80 per cent are above their 20-day EMA, improving from 54 per cent and 75 per cent in the previous session, respectively”.

The day’s trade began on a positive note and stayed range-bound until a sharp late-session rally, which pushed Nifty past the 23,400 mark, signalling renewed bullish strength.

Stock Highlights by Angel Broking

JBMAUTO surged over 11 per cent, backed by a 71x volume spike over its average weekly turnover.

MARICO hit a new all-time high, rising over 1 per cent on a decisive daily breakout.

ZYDUSLIFE fell more than 6 per cent, marking its weakest close in five sessions with 6x higher volume — signalling potential bearish continuation.

DOMS jumped nearly 8 per cent, now hovering 8 per cent below its all-time high, drawing interest for a potential breakout.

AXISBANK climbed 4 per cent, closing at a four-month high on above-average volumes — pointing to growing bullish conviction.

Bajaj Electricals rallied 7 per cent after announcing a three-year strategic partnership with Slovakian electronics firm SEAK.

Jio Financial rose 4 per cent in two days, following news of its first dividend payout.

Poly Medicure advanced over 3 per cent amid positive sentiment from the US imposing 245 per cent tariffs on Chinese medical imports— potentially boosting its export prospects.

Gujarat Mineral Development Corp soared over 9 per cent on a 14x volume spike, confirming a breakout on the daily chart.

“With Nifty nearing a key technical juncture, all eyes will be on whether it can break out above 23,700 or consolidate further. Until then, sectoral plays and stock-specific momentum are expected to dominate trading strategies,” added the brokerage firm.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company or any other kind of trades in the stock market)

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