Nifty 50 and Bank Nifty Rebounds Strongly on April 2 Despite Tariff Fears, Form Bullish Patterns

Mumbai, April 2 – India’s benchmark indices, the Nifty 50 and Bank Nifty, staged a strong rebound on Wednesday following Tuesday’s steep losses, shrugging off global uncertainty triggered by U.S. President Donald Trump’s reciprocal tariff announcement.

The Nifty 50 surged 167 points to close at 23,332, while the Bank Nifty jumped 521 points, ending the session at 51,348. This bounce helped both indices form bullish candlestick patterns on daily charts, indicating a temporary shift in sentiment despite lingering caution driven by the India VIX and global trade concerns.

Also Read: Nifty 50 Pre-Market Outlook for April 3: Trump Tariff Bombshell Shakes Global Sentiment

Trump’s Tariff Move: A Red Flag for Bulls?

Markets remain cautious as Trump slapped a 26% tariff on Indian goods and 25% on foreign-made automobiles. This “reciprocal tariff” approach is expected to influence short-term market behavior, especially if global counterparts react with retaliatory measures.

India VIX staying above short-term moving averages signals ongoing uncertainty. Analysts believe that any decisive breakdown below 23,130 on the Nifty could lead to further correction toward 22,900. Conversely, a move past 23,500–23,600 would mark a bullish continuation.

Nifty 50: Technical Outlook and Trading Strategy

Sudeep Shah, SBI Securities

• The Nifty recently failed to sustain above 23,807 and saw a throwback.
• It took support in the 23,160–23,130 zone, which aligns with the 20-day and 50-day EMA and 38.2% Fibonacci retracement level.
• The index formed an Inside Bar-like candlestick, suggesting weakening bearish momentum.

Key Levels:

• Support: 23,130, 22,900
• Resistance: 23,490, 23,650, 23,800

Strategy:

• Buy Nifty Futures between 23,400–23,435,
• Stop-loss: 23,300
• Target: 23,650–23,700

Also Read: Sensex Today: Markets Eye Volatile Open After Trump Tariff Shock, Gold Hits New High

Jatin Gedia, Mirae Asset Sharekhan

• Nifty held the 23,150–23,100 support zone, indicating accumulation.
• The rangebound move between 23,000–23,650 is expected to continue with high intraday volatility.
• A break above 23,600 could push the index toward 24,000–24,200.

Key Levels:

• Support: 23,150, 23,100
• Resistance: 23,550, 23,600

Strategy:

• Buy Nifty Futures
• Stop-loss: 23,150
• Target: 23,870–24,000

Vidnyan S Sawant, GEPL Capital

• A Shooting Star pattern last week signaled resistance at 23,800.
• The Nifty rebounded off 23,130, coinciding with the 38.2% Fibonacci retracement level.
• RSI remains above 55 and trends upward, indicating continued bullish bias.

Key Levels:

• Support: 23,100, 22,800
• Resistance: 23,870, 24,250

Strategy:

• Buy Nifty Futures above 23,550
• Stop-loss: 23,300
• Target: 23,870–24,250

Bank Nifty: Strong Bounce with Bullish Indicators

Sudeep Shah, SBI Securities

• The index formed a bullish candlestick with a higher top-higher bottom pattern.
• RSI rebounded from the 60-mark on the daily chart — a positive signal.
• Trading above short- and long-term moving averages confirms upward bias.

Key Levels:

• Support: 50,800, 50,700, 50,300
• Resistance: 51,600, 51,700, 52,500

Strategy:

• Buy Bank Nifty Futures between 51,550–51,640
• Stop-loss: 51,200
• Target: 52,160

Jatin Gedia, Mirae Asset Sharekhan

• Bank Nifty is showing leadership in the rally and is in a consolidation phase.
• Hourly momentum shows a positive crossover, signaling accumulation.
• Holding above 50,800–50,600 could lead to a breakout above 51,700 toward 53,000.

Key Levels:

• Support: 51,000, 50,900
• Resistance: 51,600, 51,700

Strategy:

• Buy Bank Nifty Futures
• Stop-loss: 50,600
• Target: 52,500

Vidnyan S Sawant, GEPL Capital

• The index held firm above its 20-week SMA, indicating long-term resilience.
• The Change in Polarity (CIP) pattern formed at 50,600, a key support.
• RSI remains steady above 60, adding to the bullish outlook.

Key Levels:

• Support: 50,600, 49,700
• Resistance: 52,100, 52,850

Strategy:

• Buy Bank Nifty Futures above 52,100
• Stop-loss: 51,550
• Target: 52,850–53,800

Market Breadth and Sentiment

• On April 2, 1,951 stocks advanced, while 640 declined, indicating broad-based buying.
• The momentum could continue if global cues remain stable, especially regarding tariff retaliation from India or other nations.
• However, elevated India VIX levels suggest heightened volatility remains a key risk.

The rebound on April 2 brought welcome relief to bulls in both the Nifty and Bank Nifty. While technical indicators hint at a continuation of the uptrend, the global macro backdrop — particularly Trump’s tariff measures — may throw a wrench in the works.

Investors should watch for a breakout above 23,600 on the Nifty and 51,700 on the Bank Nifty for fresh upside, while maintaining a cautious stance around key support levels.

Disclaimer: This article is for informational purposes only. Market investments are subject to risks. Please consult a certified financial advisor before trading.

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