Nifty Prediction for Next Week (Week Starting From 06 March 2023)

Last week, we were expecting a retest of 17750 and then a fall, albeit it didn’t happen. Yes, the ‘Nifty 50’ closed at 17594 after making a weekly high of 17644, on Friday.

Let’s have a look at the technical chart to understand where Nifty is heading towards.

Nifty 50 Technical Analysis

We can see in the weekly chart that the bearish cross (09EMA below 21EMA) has been formed and price went below the 50 week’s exponential moving average but later regained it. It means, weekly chart is still giving contradicting signal.

Nifty Weekly Chart with the placement of 09EMA, 21EMA, and 50EMA

Looking at the daily chart, we can see that bearish cross (09 DEMA below 21 DEMA) has been retested on daily chart albeit the red candle has not been formed, and a bearish trade cannot be taken until a bearish candle formed at these levels. 

Daily chart of Nifty 50 with the placement of important moving averages

The daily chart also exhibits the formation of a double bottom pattern at the 200 Days’ Simple Moving Average Zone which is a bullish signal.

Nifty Daily chart displaying the formation of Double Bottom Pattern

On the hourly chart, the bullish cross (09 EMA above 21 EMA) has been formed and price is also above 50 exponential moving average. The hourly chart is giving a signal for an up move after a decline of about 100 points.

Nifty hourly chart exhibiting the Bullish Crossover (09EMA above 21EMA) Formation 

The above discussed Nifty technical analysis suggests for a bullish trade above 17645 with a stop loss below 17427. If index does not go above 17645 but falls below 17427, then it is advisable to enter in a bearish trade with a stop loss at 17645.10.

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Nifty 50 Options' Open Interest and FII DII Data

Looking at the institutional figures, we see that foreign institutional investors have bought worth ₹6010.44 crores and DIIs have bought worth ₹12558.91 crores, which means there has been a net buying of ₹18569.36 crores which is a bullish signal.

On the options’ data front, there has been wonderful PUT addition at the strikes of 17500 and 17600 on Friday, 03 March 2023, and the PUTs at the strike price of 17500 hold highest open interest. On the contrary, CALLs hold lesser open interest.

Option's' Open Interest Data chart

So, the study of the institutional figures and options’ open interest data figures is indicating towards bullishness.

Conclusion

The above-mentioned Nifty Analysis is suggesting us to take a bullish trade above 17645, with a stop-loss below 17426.90, with a target of 17800. If by any chance it doesn’t go above 17645 but falls below 17427, then take a bearish trade with a stop loss at 17645.