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Trade setup for April 7: Will NIFTY50 reclaim 23,000 on Tuesday? Check details
4 min read | Updated on April 07, 2026, 08:01 IST
SUMMARY
The GIFT NIFTY futures traded in red on Tuesday morning, despite mixed global cues. The US markets closed in green across the board, lifted by tech stocks. Asian markets traded in green for the third consecutive session. Options data suggest that the 23,300 remains a crucial resistance zone for NIFTY50 on Tuesday.
GIFT NIFTY futures traded 85 points lower on Tuesday morning. Image: Shutterstock.
GIFT NIFTY futures traded 85 points lower on Tuesday morning, indicating a weak start, ahead of the weekly expiry.
The global market cues remain positive with US markets closing in green on Monday lifted by tech stocks. The Dow Jones rose 0.36%, the S&P500 gained 0.44% and the NASDAQ jumped 0.54%.
The crude oil prices remain elevated on Tuesday morning near $110 per barrels as President Trump issued final warning to Iran to open the Strait of Hormuz and accept the deal. President Trump gave time till Tuesday 8:00 PM ET to Iran accept the deal.
Asian markets remained bouyant across the board, despite the escalating situation in Iran. The Japanese and Korean indices traded in green for the third consecutive session with up to 0.82% gains on Tuesday.
🔎 What matters today
- Implied trading range: 22,500 to 23,400
- OI resistance: 23,200
- OI support: 22,500
- Structure: Rangebound
- Intraday tone: Sideways to bullish above 22,700
Open Interest-NIFTY50
Positioning
| Trend | Monday | Thursday |
|---|---|---|
| FIIs index short% (Futures) | 82% 🔽 | 83% |
| PCR | 1.43 🔼 | 1.12 |
| OI (23,000 CE strike) | 52 lakh 🔽 | 63 lakh |
💰 Institutional intelligence
Foreign institutional investors (FIIs) continued their selling spree in equities, offloading ₹8,167 crore. In index futures, they slightly covered bearish bets over the past two trading sessions ahead of the NIFTY50 weekly expiry.
However, their overall positioning remains net short, with net open interest at -2.68 lakh contracts, largely unchanged from the last two sessions.
** Expiry: April 7**
- Resistance: 23,450
- Support: 22,400
- Call concentration: 23,200
- Put concentration: 22,500
- Bullish above: 23,200
- Bearish below: 22,700
Trend summary: 1-hour chart
Price: Above 20 EMA and 50 EMA RSI: 58 (Bullish) ADX: 20 (Non-trending)
The NIFTY50 index witnessed a sharp reversal after an initial sell-off on Monday. The index sustained the intraday gains in the closing hours, aiding bullish sentiment. On the hourly charts, the index managed to close above 20 and 50 EMA levels of 22,727 and 22,816.
Additionally, the index also showed a potential bullish crossover, further adding momentum to the current bounce back. If the index sustains above 23,100, a short-covering rally could push it higher, with the next resistance placed around 23,450.
If–then playbook
As the broader trend remains bearish, traders should closely monitor price movements in this zone. Look out for signs of weakness, such as profit-booking or a bearish reversal candlestick pattern. However, a strong close above 23,500 would negate this outlook.
As the index attempts to stabilise near last week's low of 22,182, an immediate swing low has formed around the 22,500 zone on the hourly chart. A close below this level would indicate renewed weakness.
Disclaimer: Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop losses. We do not recommend any particular stock, securities or strategies for trading. The securities quoted are exemplary and are not recommended. The stock names mentioned in this article are purely for showing how to do analysis About The Author
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