Nifty 50 Forecast for the week starting from 20 Feb 2023

In our last week analysis, we had advised that the ‘Nifty 50’ is going to trade sideways in the seventh week of the calendar year 2023. We, the Markact, were in favour of taking a bullish trade if index held above 18000 for a day or so, which didn’t happen. We had also advised to take a bearish trade on the formation of a red candle near 17900 which had been formed on Friday, 19 Feb. 23, therefore a bearish entry shall be made if the low of that candle gets broken.

Let’s first have a look at other aspects of chart and data study.

NIFTY 50 Technical Analysis

The weekly chart of the Nifty shows that the bullish cross (09EMA above 21EMA) is intact but the price closed between both the moving average lines. Though, the Doji-like candle has been formed again but the price closed above the previous week’s high.

The daily chart has formed a bullish cross (09EMA above 21EMA) and it is at the retest zone on that formation. The daily chart has also broken the downtrend channel on the upper side and retested it too. Therefore, price might go up from these levels.

On the hourly chart, both the moving averages are overlapping. Therefore, we do not have any signal on this timeframe.

As per the Nifty Technical Analysis on these timeframes, we can say that the index might be bullish from here if it breaks Friday’s (17 February 2023) high of 18034, with a stop loss at 17883, for the target of 18500-18600.

NIFTY 50 Options’ Open Interest and FII-DII Data

The options’ OI addition data displays that there has been good call writing at 18000 on Friday, 17 February 2023. The outstanding open interest data chart exhibits superb call writers’ zone at 18000-18100 zone, which means there is a strong resistance at 18000-18100.

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Looking at the institutional figures, we see that the foreign institutional investors have bought worth ₹4005.85 crores and the DIIs have bought worth ₹2735.10 crores, which means there has been net institutional buying of ₹6740.95 crores last week. The net weekly buying of the FIIs has happened last week after continuous selling of 10 weeks. It might work as a good push for a bullish breakout.

Conclusion

The above-mentioned findings of our Nifty Analysis suggest us to buy above 18034, with a stop loss of 18883, for the target of 18500 for the coming week. If by any chance index falls below 18884.60 on Monday, 20 February 2023, a sell trade can be initiated with a stoploss above 18035. The target for the sell trade should be near 17600.

 Disclaimer: I have just shared what I studied. I am not sure if I’ll trade next week or not. Also, the Data, used for analysis, has been taken from different sources on internet and I am not a SEBI authorized analyst, therefore verify the data and seek experts’ opinion before taking any trade.