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Below Quote on Pre-market comment for Wednesday April 09th by Aakash Shah, Technical Research Analyst, Choice Broking

Indian equity markets are expected to open on a weak to gap-down note on Thursday, tracking negative signals from GIFT Nifty, which is currently trading around 24,011, down ~87 points. This indicates early selling pressure despite supportive global cues. Additionally, profit booking after the sharp rally in the previous session may weigh on sentiment.

In the previous session (08th April), benchmark indices witnessed a sharp and broad-based rally, supported by easing geopolitical tensions and a steep fall in crude oil prices. The Nifty 50 surged to near the 24,000 mark, while the Sensex gained significantly, marking a strong recovery from recent lows. The rally was largely driven by short covering, strong global cues, and aggressive buying in banking and heavyweight stocks.

The rally was driven by short covering, strong global cues, and sharp buying across banking and heavyweight stocks, along with cooling crude oil prices which eased inflation concerns. Market breadth remained robust, indicating renewed risk appetite among investors. However, the sharp upmove increases the possibility of profit booking at higher levels, especially with weak early indications today.

From a technical perspective, the Nifty 50 is now hovering near the critical resistance zone of 24,000–24,100. A sustained move above this zone could extend the rally towards 24,300, but failure to hold may lead to consolidation. On the downside, immediate support is placed near 23,700–23,600, which will be crucial in the near term.

The Bank Nifty index also showed strong recovery and closed near the 55,700 zone, indicating strength in banking stocks. Immediate resistance is seen near 56,000–56,500, while support is placed around 54,700–54,500. Banking stocks will continue to play a key role in determining market direction.

On the institutional front, FIIs remained net sellers to the tune of approximately Rs.2,812 crore, while DIIs continued their strong buying with inflows of around Rs.4,168 crore, This ongoing divergence between foreign and domestic flows continues to play a key role in market stability. Meanwhile, Meanwhile, India VIX cooled sharply to around 19.69, indicating a decline in volatility, though markets may still witness intraday swings

Overall, the market setup suggests a gap-down or weak start after a strong rally, with high chances of profit booking and consolidation in early trade. Traders are advised to adopt a cautious approach, prefer buy on dips near support levels, and avoid aggressive long positions at higher levels.

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