Sensex, Nifty stock market prediction next week: Ideal strategy amid volatility?

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The Indian stock markets have recently experienced a significant rebound, with the Sensex surging over 1,500 points and the Nifty crossing the 23,300 mark. This recovery follows the U.S. administration’s decision to pause certain tariffs, alleviating some global economic concerns and bolstered investor sentiment

Technical Landscape

Despite the recent gains, market experts caution that the overall texture remains volatile and uncertain. Amol Athawale, Vice President of Technical Research at Kotak Securities, notes that while the indices have formed bullish patterns on weekly charts, the market’s underlying volatility necessitates a cautious approach

Key Support and Resistance Levels

  • Nifty 50

    • Support: 23,234 / 23,140 / 23,073

    • Resistance: 23,396 / 23,463 / 23,557

    • Stop-loss for long positions: 22,888​

  • Sensex

    • Support: 76,477 / 76,220 / 76,005

    • Resistance: 76,950 / 77,165 / 77,423

    • Stop-loss for long positions: 75,370​

These levels suggest that while there is room for upward movement, traders should remain vigilant for potential resistance and adjust their strategies accordingly .​

Strategic Recommendations Amid Volatility

  • Adopt a Hedged Approach: Given the prevailing uncertainty and sharp market swings, traders and investors are advised to employ hedging strategies to mitigate potential losses .​

  • Focus on Level-Based Trading: With the market’s current volatility, a level-based trading strategy can help in making informed decisions. This involves setting clear entry and exit points based on technical support and resistance levels .​

  • Monitor Volatility Index (India VIX): Although the India VIX has recently decreased, indicating reduced fear among investors, it remains elevated compared to historical averages. Continuous monitoring of this index can provide insights into market sentiment and potential volatility .​

Conclusion

While the recent rally in the Sensex and Nifty offers a positive outlook, the underlying market volatility calls for a cautious and strategic approach. By focusing on technical levels, employing hedging strategies, and staying informed about market indicators like the India VIX, investors can navigate the current landscape more effectively.​

Note: This article is based on information available as of April 15, 2025. Investors are advised to conduct their own research or consult financial advisors before making investment decisions.

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