Nifty 50 Prediction For Tomorrow, 24 April 2023

On Friday, the NIFTY 50 opened at 17639, made a high of 17662 and started falling to make a low of 17554.10 by 01:15 PM. After that a good up-move came to take the index at a high of 17637.55, later Nifty closed at 17621. 

In our yesterday's prediction, I suggested not to take any trade but I also said that one can think of entering a bearish trade below 17574, which would have gone wrong for you on Friday. If you have that trade open, hold it with the stop loss of 17685 because I am also doing the same.

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 almost been retested on Friday, confirming that the bullishness is still intact.
2. The Golden Cross (50DEMA above 200DEMA) is intact and both the EMAs have almost been retested, giving a bullish signal. 
3. The price had broken above the down-trendline on 11 April 2023 and that trendline has not been broken down in last five trading sessions. 
4. The daily RSI, near 55 levels, is suggesting indecision because it has room for both, bullish and bearish moves, but because all the daily EMAs are giving bullish signals, it should be considered to have vacated space for the bullish move.
5. The bearish cross (09DEMA above 21DEMA) has been retested again, on hourly chart, then index fell and went up again to close at retest zone. Price closed right below 50EMA also on hourly chart.
6. The price is quite near 09EMA, 21EMA, and 50EMA on hourly chart which might be a retest for further bearishness.
7. The RSI is near 50 on the hourly chart, exuding indecision.

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

Nifty 50 Options' Open Interest Data

1. The option-writers have added good number of CALLs at 17700 while all other strikes have got about half OI addition of this; the strikes below 17700 observed PUT addition and strikes above 17700 observed CALL addition.
2. Furthermore, the strike of 17700 became a strong resistance with highest CALL-OI there, but the outstanding OI-data chart is telling similar story to that of OI addition chart. Therefore, index should fall from 17700, but if this zone got broken on the upside, there is no further resistance left to stop the up-move.  

Nifty 50 Options' Open Interest Data Chart

Nifty 50 FII DII Data

Below is the activity of the institutions on Friday, 21 April 2023.

FII DII Data

This Data is giving bearish signal.

Conclusion

Upon looking at above-mentioned Nifty analysis its visible that the placement of all EMAs on daily chart evinces bullishness but the shorter EMAs on hourly chart are suggesting bearishness along with the institutional activity. Further, the options' OI data suggests a possibility of a good bull move above 17700 while RSI readings suggest indecision. Therefore, I think we should enter a bullish trade if index holds above 17685-17715 for about an hour, with a stop loss below 17550; keep the target according to the momentum. However, if Nifty 50 falls below 17550, a bearish trade with the SL above 17685 shall be taken, for the target of 17419.