Nifty Prediction April 9, 2025: Will Sharp Rebound Sustain or Fizzle Out? Key Triggers Ahead

Nifty Prediction April 9, 2025: The Nifty 50 staged a dramatic comeback today, opening with a strong 285-point gap-up at 22,446.75 amid positive global cues and a rebound in US markets overnight, on Tuesday. After briefly hitting 22,550 in early trade, the index dropped sharply by 280 points to test 22,270.

However, the bulls stepped in, helping the index recover nearly 200 points before it broke out above the 22,600 level to hit an intraday high of 22,697. Nifty eventually ended at 22,535.85, up 1.68% for the day, after some late-session consolidation.

Tariff Talks Lift Market Mood

This rebound was largely attributed to global optimism amid easing concerns on the tariff front. “We've seen a sharp rebound in domestic equity indices, in line with the positive momentum in US and Asian markets. This is largely on the back of optimism that US President Trump may adopt a softer stance on tariffs,” said Sugandha Sachdeva, Founder of SS WealthStreet.

She added, “Japan is sending a delegation to the US for further negotiations, and other countries are also expected to engage in similar dialogues aimed at reducing tariff burdens. Moreover, China’s plans to unveil a substantial fiscal stimulus package have further lifted global market sentiment.”

Also Read: Tariffs To Hit Jewellery Sector? Why Is Motilal Oswal Bullish On These Stocks Then?

RBI Policy and Fed Minutes in Focus

Market participants are also keenly awaiting domestic policy signals, with the Reserve Bank of India’s monetary policy decision scheduled for tomorrow morning. Expectations are building around a rate cut. “There are strong expectations that the RBI governor may cut rates by 25 basis points in response to the global uncertainty and the potential economic impact of the tariff situation. We also expect him to maintain a dovish stance,” Sachdeva added, highlighting that bargain buying from lower levels also supported today’s rally.

“Despite the sharp bounce, caution still lingers. While the market has recovered, the broader outlook is still clouded by uncertainty on the global tariff front. Key resistance levels are seen around 22,800 to 23,100 on the Nifty, which could limit further upside in the near term,” Sachdeva concluded.

Analysts Advise Caution

From a technical standpoint, Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan, believes the bounce might be short-lived: “The Nifty has witnessed a sharp pullback towards 22500 – 22600 which coincides with the key hourly moving averages and the 38.2% Fibonacci retracement level of the recent decline from 23870 – 21743.”

He cautions that the rally could be a counter-trend move rather than the start of a sustained uptrend: “We believe that the counter-trend pullback is likely to fizzle out and resume its downtrend towards 21500/21280 and hence this pullback should be considered as a selling opportunity.”

Derivative data also suggest a consolidation phase. “22800 CE added decent OI suggesting resistance, 22500 PE added OI on the Put side suggesting support. Thus, the weekly expiry is likely between the above range,” Gedia added.

Beyond domestic factors, global developments continue to steer sentiment. “Almost 70 countries have contacted the White House to discuss the tariffs... there are hopes that there could be some de-escalation in the global trade war,” Sachdeva said.

Broader market sentiment was upbeat, with 2,391 stocks advancing out of 2,957 traded on the NSE, on Tuesday. All 12 sectoral indices ended in the green, reflecting widespread buying interest. Nifty Media led the pack, surging 4.72%, while Nifty Bank was the least performer among gainers, rising 1.31%.

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