Weekly Nifty 50 Technical Analysis: Market Sentiment Decoded

Stay updated with this weekly nifty 50 technical analysis report covering key events, and important price levels to help you navigate Indian stock market trends.

Last week, from 14th – 18th April 2025, the Indian stock market was open for three days since Monday and Friday were public holidays. In the three trading days, the Indian stock markets recovered most of its recent losses and closed 4.48% higher. 

In this weekly Nifty 50 technical analysis blog, we will take a look at the reasons why the markets recovered and what the price action is conveying about the current week (21st – 25th April 2025). 

Market Recap: 14th – 19th April, 2025

Last week, the stock market closed 4.48% higher at 23,851 level. This positive move came after the index fell 5% in the week before. This is the first time since 3rd January 2025, that the index closed above the 23,800 level. 

Let us take a look at the performance of some other major Indian indices in the previous week:

Reasons for Market Performance Last Week 

Here are some reasons that led to the positive Indian stock market trend last week: 

• FII / DII Activity: Last week, in the cash segment, domestic institutional investors, or DIIs, were net sellers of equities. But, this was offset by more than double the net buying done by foreign institutional investors. 

Source: Stockedge

• India Inflation Rate: Last week India’s consumer price inflation for the month of March (year-on-year) stood at 3.34%. This figure gave investors confidence that the Reserve Bank of India might cut interest rates further in its next meeting.  
• US Tariff Policy: Investors worldwide were concerned with the rising US and China trade war, which might have resulted in foreign investors parking their funds in Indian equities, as suggested by FII buying data. 

Weekly Nifty 50 Technical Analysis

Let us analyse the price action behaviour of the Nifty 50 index for the previous week: 

Source: Tradingview; Nifty 50 Daily Chart as on 21st April 2025, with MACD indicator and 200-day EMA. 

• Last week, the markets crossed above the 200-EMA on the daily charts, indicating some bullishness in the index. On Monday, April 21st, 2025 the markets opened at 23,949, showing bullishness. 
• The move above 200-EMA can be confirmed by a positive MACD crossover, indicating rising momentum above the zero line. These cues indicate potential bullishness in the stock markets.
• If we look at the Nifty 50 chart patterns, a double bottom formation can be seen on the daily charts. 
• The Nifty 50 index can face resistance at 24,100 – 24,200 levels (indicated by two horizontal red lines). 

Nifty 50 Trading Strategies: Key Levels to Watch 

Here are some major Nifty 50 support and resistance levels and other technical signals that investors can watch this week to understand the market sentiment. 

Positive Signals 

Source: Tradingview; Nifty 50 Daily Chart as on 21st April 2025, with MACD indicator and 200-day EMA. 

On the daily chart of the Nifty 50 index, the index faces an immediate resistance zone of  24,100 – 24,200 level. A move above this zone can indicate strong bullish sentiment in the markets. A move above this zone will take the index to new highs (for 2025). 

Source: Sensibull, Green bars indicate Put option OI, and red bars indicate Call option OI, for 24th April,2025 expiry. 

The market is most likely to hold the 24,000 level as suggested by increased open interest on the 24,000 put option for the 24th April 2025 expiry. (Longest green bar)

Negative Signals 

On the daily charts of the Nifty 50 index, the first negative sign that would indicate buyers are losing strength is the index slipping below the 200-EMA on the daily charts. 

This move can get an even higher negative reception if the MACD indicator on the daily charts slips below the zero line. In such a case, the next support zone will be at the 23,000 – 23,200 zone.

Performance of Other Markets

Let us take a look at other indices and asset-classes that can provide insights into Indian stock market trends: 

The dollar index lost 0.47%, whereas gold gained 1.61% as investors might be hedging their bets against any surprise trade policy action by the US government. 

Key Economic Factors for the Current Week 

Here are some major factors that have the potential to influence the investor sentiment for the current week. 

• US-China Trade Talks: The US and the Chinese governments have shown interest in negotiating trade deals with each other. This comes after increased trade tensions between the two nations. Any positive news on this ground can influence the market sentiment positively and vice-versa. 
• US-India Trade Deal: The Indian government delegation will be discussing trade deals with the US government on 23rd April 2025. Any positive news on this front, such as tariff reduction, can impact the Indian markets positively.   

Conclusion 

The nifty 50 index started the week on a positive note. If the sentiment stays positive or turns negative will depend on a number of factors. Similar to the past two months, the markets this week also have a high possibility of staying highly volatile, with sudden shifts in sentiment. Investors and traders must use proper stop loss and risk management strategies in such market conditions. Traders can visit numerous online platforms to access charting and market tracking tools. 

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Kinshuk

Kinshuk is a writer at Investon. He has a passion for writing articles around various topics related to finance. He has previously written on diverse topics related to finance, ranging from technical analysis to IPOs. He has cleared level 3 of the CMT program.

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