Nifty 50 Prediction For Tomorrow, 02 May 2023

On Friday, the NIFTY 50 opened at 17950.40, retested the level of 17885.40 and started surging to make a high of 18088.80 and close of 18052.70.

Nifty 50 Daily chart with the positioning of important EMAs

In our yesterday's prediction, I suggested to take a bullish trade if index opens near yesterday's close and that's what has happened. if one would have taken a bullish trade near the opening of the day, he/she would have observed a up-move of around 120 points.

Let's now have a look at the charts and other aspects to identify the next week's Nifty prediction. 

Nifty 50 Chart Reading for 28 April 2023

1. The 09DEMA remains above the 21DEMA, indicating a bullish signal. However, as the current market price is 265 points away from the shorter EMA, a retest may be likely.
2. Moreover, the Golden Cross, formed by the 50DEMA and 200DEMA, is still intact, providing another bullish signal. 
3. On the daily chart, there appears to be a resistance zone between 17132-17200.
4. The RSI is currently near 86 levels, signaling both strength and an overbought position.
5. On the hourly chart, the bullish cross between the 9EMA and 21EMA remains intact, and a Morubozu-style last green candle has formed, indicating momentum. 
6. Additionally, the RSI is approaching 85 levels, indicating that a bearish RSI divergence has been formed, which could potentially push prices downward.

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

Nifty 50 Options' Open Interest Data as on 28 April 2023

1. Last Friday, there was impressive PUT writing activity at the 18000-strike, whereas CALL writing was comparatively weaker.  
2. Looking at the outstanding OI data, the 18000 strike and all lower strikes have a strong PUT OI, indicating that this zone provides good support. However, there is no strong resistance seen in the outstanding CALL OI data at any of the strikes.

Nifty 50 Options' Open Interest Data Chart

Nifty 50 FII DII Data as on 28 April 2023

Below is the activity of the institutions on Friday, 28 April 2023.

FII DII Data

This Data is giving bullish signal.

Conclusion

The After analyzing the various aspects of Nifty, we have come to the following conclusions:

Firstly, the placement of daily exponential moving averages and the RSI level suggest a bullish trend. Secondly, the hourly chart also indicates a bullish trend, but the distance of the price from EMAs indicates a potential retest. Thirdly, the RSI on the hourly chart shows bearish RSI divergence. Fourthly, the FII DII data from Friday indicates a bullish sign, as both FIIs and DIIs have made significant purchases. Finally, the options' open interest data suggests that 18000 has now become a support level, but there is no clear resistance on the upside.

Therefore, we recommend taking a bullish trade near 17870, which is the previous resistance level. However, it is crucial to wait for an hourly green candle to form near the said level before entering the trade. Additionally, the stop loss should be placed below the low of that candle.