D-Street Ahead: How will Indian stock market move next week? Your trading strategy—key technical calls for Nifty, Sensex

D-Street Ahead: The Nifty 50 ended 1.8% higher at 23,851.65, while the BSE Sensex added 1.96% to end at 78,553.2 ahead of the Good Friday holiday.

The indexes rose 4.5% in the holiday-truncated week, while their major Asian peers underperformed due to the uncertainty over U.S. tariffs and worries about their effect on economic growth.

This week, financial stocks rallied on the prospects of healthier net interest margins after top lenders lowered their deposit rates, following the central bank’s rate cut.

ICICI Bank and HDFC Bank, the heaviest weighted stock on the Nifty, soared 7.2% and 5.5%, respectively, this week to hit lifetime highs ahead of their earnings release over the weekend.

Technically, Nifty has been trading within a broad range of 21,700–23,800 over the past two months and has now reached the upper end of this band. Moreover, it has reclaimed key moving averages—the 100 and 200-day EMAs. Going forward, the prevailing positive momentum is expected to continue, with a potential upside towards the 24,250–24,600 zone. In case of a dip, the 23,000–23,300 zone is likely to act as a support.

A sharp decline in the volatility index (India VIX) also signals a reduction in market fear after recent choppiness. Among the key sectors, the continued strength in the banking index has been crucial. It is now on the verge of hitting a new record high. The earnings of heavyweights like HDFC Bank and ICICI Bank are expected to provide important cues for the next market move.

On the higher side, the index could target the 55,000–57,000 zone, considering the consolidation phase over the last nine months. In case of any dip, the 51,900–53,400 zone is expected to offer strong support.

With signals pointing to a continuation of the current recovery, a “buy on dips” approach is advisable until Nifty breaches the 23,000 mark. Sector-wise, rate-sensitive segments such as banking, financials, auto, and realty continue to be preferred and advised to be selective in other sectors.

Participation from the broader market is also visible, further strengthening the bullish sentiment however focus should be on fundamentally sound stocks, especially with earnings season underway.