Nifty 50 Prediction For Tomorrow, 18 April 2023

The Nifty 50 traded bearish today, opening at 17863 and fell down to make a low of 17574 and close of 17702. This move was inline with our research for today's trade because we had suggested to take a bearish trade, yesterday only. 

Nifty 50 Daily chart with the positioning of important EMAs

Let's have a look at the charts and other aspects to identify where Nifty is heading towards. 

Nifty 50 Chart Reading

1. The longer length EMA of the bullish cross (09DEMA above 21DEMA) has been retested on daily chart, giving a bullish signal.
2. 50DEMA and 200DEMA have made the Golden Cross as 50DEMA has crossed above 200DEMA, which is a bullish signal. 
3. The price had broken above the down-trendline on 11 April 2023 and that trendline has been retested today. It is also a bullish signal. 
4. The daily RSI has reached near 66 levels to vacate some room for further bullishness.
5. On the hourly chart, the 9EMA has crossed below 21EMA making a bearish cross but 50EMA has been retested on bullish side. It means 50EMA is giving bullish signal and rest two are giving bearish signal.
6. The price is right at 09EMA and 21EMA which might be a retest of bearish cross (09EMA below 21EMA) formed today.
7. Further, if you see the chart of 2-hours' timeframe, bearish cross (09EMA above 21EMA) has been well retested.

Nifty 50 hourly chart showing the placement of 09,21, and 50 EMAs

Nifty 50 Options' Open Interest Data

1. A good number of CALL addition has happened at all the strikes above 17700 with a lot lesser PUT addition at all lower strikes.
2. Further, the highest outstanding open interest is evident at the CALL of 17700 along with  similar CALL-OI at the strike price of 17700. The PUT-OI is relatively lower at all the strikes; the higher strikes have negligible PUT-OI. It means there is a strong resistance on the upside but no support in downside.  

Nifty 50 Options' Open Interest Data Chart

Nifty 50 FII DII Data

Below is the activity of the institutions on Monday, 17 April 2023.

FII DII Data

This Data is giving bearish signal.

Conclusion

Our above mentioned Nifty analysis shows that all the exponential moving averages on daily chart along with RSI are indicating for a bullish move. Even the 50EMA positioning of hourly chart is suggesting the same. The only problem is with 09EMA and 21EMA on hourly chart that are evincing bearishness which is also supported by institutional figures and open interest data. However, we will take bullish trade only. The levels are as follows: 

Entry: Above 17720

Stop Loss: Below 17573

Target: 17850