Dhupesh Dhameja, 

Derivatives Research Analyst, 

SAMCO Securities

Mumbai, April 8, 2026: Nifty index witnessed a strong gap-up opening driven by positive global developments, with the index extending gains during the session and closing near 23,997.35, indicating aggressive short covering and improved risk appetite. 

Nifty’s gap-up rebound shifts sentiment; 23,770 support holds key

Derivatives Analysis Report

The move helped the index reclaim short-term moving averages, signalling a shift from corrective phase toward a pullback structure. On the daily chart, the index formed a strong bullish candle and briefly crossed the 24,000 psychological mark.

Momentum indicators strengthened notably, with RSI moving above the 50 mark, entering the neutral zone after nearly a month, reflecting improving sentiment. Importantly, the index has reclaimed the 0.382 Fibonacci retracement level near 23,770, which now becomes a make-or-break level. Holding above this zone may sustain the recovery, while a slip below it could lead to filling of the unfilled gap formed during today’s gap-up opening.

From a retracement perspective, the next key resistance is placed near the 0.50 Fibonacci level around 24,260, which coincides with overhead supply and the 50-EMA zone. A decisive move above 24,200 could open the gates for 24,500, indicating continuation of the pullback. The overall structure suggests a buy-on-dips approach remains favorable as long as the index holds above immediate support levels.

From the derivatives front, PCR stands near 1.20, indicating improved sentiment and short-covering bias. On the options chain, call writing is visible near 24,200–24,500, capping the upside, while the put writing emerged around 23,800 and 23,700, reinforcing the support base. Additionally, India VIX cooled sharply, reflecting easing volatility after recent uncertainty, which may further support the ongoing recovery.

Going ahead, sustaining above 23,770 could keep the rebound intact towards 24,200–24,500, while a break below this level may drag the index back toward the gap support zone.

Nifty Bank recovers 50% of decline; 55,000 emerges as make-or-break level

Nifty Bank index witnessed a strong gap-up opening followed by a broad-based short-covering rally in heavyweight banking stocks, leading to a sharp single-day surge. The index closed firmly higher at 55,703.90, marking one of the strongest recoveries in recent sessions and retracing nearly 50% of its recent decline, indicating aggressive unwinding of bearish positions.

On the daily chart, the index formed a strong bullish candle and decisively reclaimed the 55,000 psychological level, highlighting improving sentiment.

Momentum indicators also strengthened, with RSI moving above the 50 mark and entering the neutral zone after nearly a month, signalling renewed optimism. Technically, the index is hovering near the 0.50 Fibonacci retracement level, and sustained trade above this zone could extend the recovery towards 50-DEMA, while  20-DEMA remains the immediate dynamic support. The index has also left behind a major unfilled gap formed during the gap-up session, which now becomes an important support base.

The 55,000 level now acts as a make-or-break zone; holding above it may keep the recovery intact, while a move below this level could lead to gap filling and invite renewed selling pressure.

The overall structure favors a buy-on-dips approach as long as the index sustains above key supports.

From the derivatives front, PCR stands near 0.80, indicating improved sentiment after the sharp rebound. On the options chain, call writing is visible around 56,000–57,000, suggesting immediate resistance, while the put writing emerged near 55,000 and 54,500, indicating near-term support formation.

Going ahead, sustained trade above 55,000 could extend the rally toward 56,500–57,200, while failure to hold this level may lead to retracement toward the gap support zone.

Nifty and Nifty Bank Deliver Powerful Reversal as Panic Selling Reverses

Om Mehra, Technical Research Analyst, SAMCO Securities

Technical Analysis Report

Nifty ended the session at 23,997.35, gaining 3.78%, with the index witnessing a sharp gap-up rally driven by easing geopolitical tensions and a ceasefire trigger. The move was largely led by aggressive short covering, with prices sustaining higher levels throughout the session and closing near the day’s high.

On the daily chart, Nifty has reclaimed the 38.2% Fibonacci retracement level placed around 23,770, indicating a meaningful recovery. The index has also moved back above the 20-Day moving average and is now inching closer to the 50-Day SMA placed near 24,500, which becomes the next important zone to watch.

The unfilled gaps between 23,154–23,828 highlight the strength of the current move, with prices transitioning sharply without offering intermediate pullbacks.

The RSI has moved up toward 54, reflecting a shift from weak to improving momentum, while the MACD has turned positive with a rising histogram.

All sectors ended in the green, and the advance-decline ratio strengthened sharply, highlighting broad-based participation.

India VIX declined sharply by 20.24% to 19.69, indicating a significant cooling in volatility and uncertainty.

The immediate resistance is placed around 24,200–24,500, where the 50-Day SMA is positioned.

On the downside, the 23,800–23,700 zone is expected to act as a support band.

Nifty Bank closed at 55,703.90, up 5.67%, after a sharp rebound of nearly 3,000 points, driven by easing geopolitical tensions and aggressive short covering. The move remained strong throughout the session, with prices holding near the highs, indicating sustained buying interest across the banking space.

The rally has pushed the index back above the 20-Day moving average and toward the 50-Day SMA, indicating a notable improvement in near-term conditions. The index has also retraced toward the 50% Fibonacci retracement level placed near 55,700.

The unfilled gap between 52,778 and 54,797 reflects the strength of the rebound.

The RSI has moved up toward 53, reflecting a shift toward positive momentum, while the MACD histogram has turned positive, indicating strengthening upside traction after a prolonged period of weakness.

Private and PSU banks posted strong gains, supporting the overall move.

The immediate resistance is placed around 55,800, followed by 56,800, aligning with the Fibonacci cluster.

On the downside, 55,200–54,800 is expected to act as a support zone.