Nifty 50 Prediction For Tomorrow, 17 April 2023

The Nifty 50 has traded sideways on Thursday, 13 April 2023, opening at 17807.30 and making a low of 17729.70 by 12:45 PM. After that up-move started to make a high of 17841.50 and close of 17828.15. 

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. A bullish cross (09DEMA above 21DEMA) is intact on daily chart.
2. 50DEMA and 200DEMA both are positioned at the same level and indicating towards the possibility of Golden Cross formation, which is bullish signal. 
3. The price is quite far from all the daily EMAs, therefore might fall a bit to retest them.  
4. On the hourly chart, the 9EMA is on the top , 21EMA is placed below that, and 50EMA is in the lowest position. It is also a bullish signal.
5. On Thursday, 13 April 2023, 21EMA has been retested on the hourly chart, signaling for bullish continuation. 

   

   Nifty 50 hourly chart showing bearish RSI divergence

6. The 7-length RSI is showing the divergence with the price, giving a bearish signal.

Nifty 50 Options' Open Interest Data

1. The 17800 has observed good PUT writing while 17850 has observed notable CALL writing, on Thursday, 13 April 2023. Rest all strikes observed unwinding only.

   

   Nifty 50 Options' Open Interest Data Chart

2.  Further, the 17850 strike is holding highest CALL open interest with negligible PUT writing, making this zone a good resistance. 

Nifty 50 FII DII Data

Below is the activity of the institutions on Thursday, 13 April 2023.

This Data is giving neutral signal.

Conclusion

Though the retest of bullish cross (09DEMA above 21DEMA) on hourly chart and the positioning of all daily exponential moving averages (09EMA, 21EMA, 50EMA, and 20DEMA) is also showing bullishness but the price is too far from from all DEMAs and a bearish RSI divergence is also formed on hourly chart. Therefore we should take a bearish trade as mentioned below: 

Entry: 17800-17827

Stop Loss: 17843

Target: 17724