Last Updated:
Nifty Prediction For Monday, April 7: The NSE benchmark index has major support at 22,800, breaching which will open the possibility of hitting the previous low of nearly 21,900, according to analysts.
the Gift Nifty is currently down around 600 points, signalling a gap-down in Indian markets on Monday.
The domestic equity market has resumed its downside journey after a brief bullish momentum last month, with the NSE Nifty slipping to its two-week low on Friday (April 4, 2025). It has resumed its bearish phase amid rising fears of a global trade war and recession, which have created a wave of negative sentiment. According to analysts, the Nifty has created a strong bearish candle on both daily and weekly charts, and has major support at around 22,800, breaching which will open the possibility of hitting the previous low of nearly 21,900.
On Friday, the NSE Nifty declined 345.65 points or 1.49 per cent to close at 22,904.45. In the session, the 50-share benchmark gauge 382.2 points or 1.64 per cent to 22,867.90.
Nifty Key Support & Resistance Levels, Option Chain Analysis
The NSE Nifty has broken below its crucial 21-day and 55-day exponential moving averages (EMAs). “It signals a shift back into a negative trend, and the near-term outlook remains bearish,” said Puneet Singhania, director at Master Trust Group.
According to a trader, the key support of the NSE Nifty lies at around 22,800, which has acted as a key support and resistance levels in the past one year.
“If the Nifty fails to defend this level (22,800), it opens up the possibility of hitting the previous low of 21,963, which was recorded on March 3, 2025,” he added.
On the momentum indicators, the Relative Strength Index (RSI) has dropped below its 14-day simple moving average (SMA). “It further confirms weakening momentum,” Singhania said.
Choice Broking in its note said, “The Nifty is hovering close to a critical support zone around 22,800. A breakdown below this level may intensify the selling pressure and open the gates for further downside towards 22,500 and even 22,000.”
As per an Option Chain analysis, on the immediate downside, the support levels for the Nifty remain at 22,900, 22,800, 22,700, 22,500, 22,300, 22,050, and 21,950. The 22,500 level has the highest open interest (OI).
On the upside, 23,000 now acts as a strong immediate resistance, followed by 23,100, 23,200, 23,300, 23,400, and 23,500. The 23,200 level has the highest open interest.
GIFT Nifty Signals Gap-Down On Monday
Looking at global cues, the Gift Nifty is currently down around 600 points, suggesting a weak start for Indian markets on Monday. US markets too ended lower, dragged by renewed concerns around trade tariffs. If Dow futures remain negative, it may further dampen the sentiment.
“The overall setup points to a cautious start for the coming week unless there is some relief on the global front,” Choice Broking said.
What Should Traders Do On Monday, April 7?
Considering the current technical and global setup, markets may open with a gap down on Monday. Traders should keep a close watch on the 22,800 level as a key support, Choice Broking said.
Puneet Singhania of Master Trust Group said that in the current environment, the Nifty becomes a sell-on-rise market, and traders are advised to remain cautious and avoid aggressive long positions until stability returns.
‘Bank Nifty Shows Relative Strength’
The Bank Nifty continues to trade above its double bottom pattern and remains in a tight range over the past 10 sessions. It is holding above the crucial 21-day and 55-day EMAs, indicating short-term support. However, the breakout level of 50,600 now acts as a key support; a breach below this could lead to a decline toward 49,600, which aligns with the 55-week EMA.
On the upside, the psychological resistance of 52,000 remains a major hurdle. Until this level is crossed decisively, further upside momentum is unlikely. The overall view remains cautious, and traders are advised to stay alert with key levels in focus.
“Bank Nifty has shown relative strength, closing flat this week, despite broader market weakness,” Singhania said.
Key Things To Watch Out For This Week: RBI Policy, Q4 Earnings, Tariff War
In an eventful week ahead, stock markets may face volatile trends before the RBI’s interest rate decision and the US inflation data announcements, as investors continue to assess the broader implications of US tariffs on global economy and inflation, according to analysts. Apart from this, markets will also be guided by India Inc’s Q4 earnings.
Investors fear that a full-blown trade war will impact global trade and economic growth, according to market experts.
India’s largest IT services company TCS will declare its Q4 earnings on April 10, kickstarting the Q4 corporate earnings season.
Equity markets would remain closed on Thursday for ‘Shri Mahavir Jayanti’.
