Introduction
Trade Setup for 3rd April: The Indian stock market is set for another volatile session as traders digest the impact of US President Donald Trump’s recent announcement of a 26% reciprocal tariff on India and 25% tariffs on foreign-made automobiles. This move could affect investor sentiment and lead to increased market fluctuations.
On April 2, both the Nifty 50 and Bank Nifty rebounded after a sharp correction on April 1, forming bullish candlestick patterns on the daily charts. However, India VIX sustaining above short-term moving averages ahead of the tariff announcements signals potential caution for bulls.
Key levels to watch: Trade Setup for 3rd April
- Nifty 50 Support: 23,130 (Tuesday’s low), 23,000, and 22,900
- Nifty 50 Resistance: 23,500, 23,650, and 23,800
- Bank Nifty Support: 50,700, 50,600, and 50,300
- Bank Nifty Resistance: 51,700, 51,800, and 52,500
Market Performance on April 2
The market witnessed a strong rebound on April 2 after a sharp fall in the previous session.
| Index | Closing Price | Change | Change (%) |
|---|---|---|---|
| Nifty 50 | 23,332 | +167 Points | +0.72% |
| Bank Nifty | 51,348 | +521 Points | +1.02% |
Market breadth remained positive:
- 1,951 stocks advanced, while 640 stocks declined.
- India VIX remained elevated, signaling higher volatility.
Nifty 50 Trade Setup for 3rd April
Technical Analysis by Experts
1. Sudeep Shah, SBI Securities
Key Observations:
- Nifty failed to sustain above 23,807 (previous swing high) and faced a pullback.
- Strong support was found at 23,130-23,160, a confluence of 20-day & 50-day EMA and 38.2% Fibonacci retracement.
- Inside Bar pattern on the daily chart signals weakening bearish momentum.
Key Levels & Trade Setup:
| Support Levels | Resistance Levels | Strategy |
|---|---|---|
| 23,130, 22,900 | 23,490, 23,650, 23,800 | Buy Nifty Futures between 23,400-23,435, SL: 23,300, Targets: 23,650-23,700 |
2. Jatin Gedia, Mirae Asset Sharekhan
Key Observations:
- Nifty held 23,100-23,150 support zone and saw buying interest.
- Expected to consolidate between 23,000-23,650 with high intraday volatility.
Key Levels & Trade Setup:
| Support Levels | Resistance Levels | Strategy |
|---|---|---|
| 23,100, 23,150 | 23,550, 23,600 | Buy Nifty Futures, SL: 23,150, Targets: 23,870-24,000 |
3. Vidnyan S Sawant, GEPL Capital
Key Observations:
- Nifty faced resistance at 23,800, leading to a correction.
- Shooting Star candlestick pattern signals selling pressure.
- RSI remains above 55, suggesting a positive bias.
Key Levels & Trade Setup:
| Support Levels | Resistance Levels | Strategy |
|---|---|---|
| 23,100, 22,800 | 23,870, 24,250 | Buy Nifty Futures above 23,550, SL: 23,300, Targets: 23,870-24,250 |
Bank Nifty Trade Setup for 3rd April
Technical Analysis by Experts
1. Sudeep Shah, SBI Securities
Key Observations:
- Gap-up opening led to a higher top & higher bottom formation.
- RSI rebounded near 60, indicating a bullish trend continuation.
- Trading above both short- and long-term moving averages supports positive momentum.
Key Levels & Trade Setup for 3rd April:
| Support Levels | Resistance Levels | Strategy |
|---|---|---|
| 50,700, 50,800, 50,300 | 51,600, 51,700, 52,500 | Buy Bank Nifty Futures between 51,550-51,640, SL: 51,200, Targets: 52,160 |
2. Jatin Gedia, Mirae Asset Sharekhan
Key Observations:
- Bank Nifty is leading the rally, consolidating over the last five sessions.
- Hourly momentum triggered a buy crossover.
- Holding 50,800-50,600 support zone, a break below could lead to 50,000-49,800 levels.
Key Levels & Trade Setup:
| Support Levels | Resistance Levels | Strategy |
|---|---|---|
| 50,600, 51,000 | 51,600, 51,700 | Buy Bank Nifty Futures, SL: 50,600, Target: 52,500 |
3. Vidnyan S Sawant, GEPL Capital
Key Observations:
- Bank Nifty has been holding above its 20-week SMA for the last three weeks.
- Change in Polarity (CIP) pattern formed at 50,600, reinforcing a strong base.
- RSI above 60 suggests continued positive momentum.
Key Levels & Trade Setup:
| Support Levels | Resistance Levels | Strategy |
|---|---|---|
| 50,600, 49,700 | 52,100, 52,850 | Buy Bank Nifty Futures above 52,100, SL: 51,550, Targets: 52,850-53,800 |
Conclusion: Trade Setup for 3rd April
The Trade Setup for 3rd April revolves around whether Nifty 50 can defend 23,000 and if Bank Nifty can stay above 50,600 amidst Trump’s tariff decision.
- Bullish Scenario:
- Nifty 50 needs to reclaim 23,500 for a rally towards 23,800-24,000.
- Bank Nifty must stay above 51,700 to resume its uptrend towards 52,500-53,200.
- Bearish Scenario:
- A break below 23,130 in Nifty could trigger a fall towards 22,900.
- Bank Nifty slipping below 50,600 could test 49,700.
With India VIX elevated, volatility remains a key factor. Traders should follow strict stop-losses while executing their trade setups. Stay cautious, trade wisely! 🚀
You might also like to read: Trade Setup for April 2: Nifty Trajectory Hinges on Trump’s Tariff Announcement
Visual Recap: Trade Setup for 3rd April
