Nifty 50 Prediction For Tomorrow, 19 April 2023

The Nifty 50 traded bearish today. It opened gapped up at 17766, fell to make a low of 17663 in the very first hour, after that traded sideways in the range of 17650-17708 by 01:15 PM. And then there came another fall which made a low of 17610 by 02:15 PM. Later, it went up to make a high of 17673 and close of 17661. This move has been completely against our prediction and that's why I always suggest to keep a stop loss. 

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 twice in a row, confirming that the bullishness is still intact.
2. The Golden Cross (50DEMA above 200DEMA) had been formed yesterday only, which is a bullish signal. 
3. The price had broken above the down-trendline on 11 April 2023 and that trendline has been retested yesterday as well as today. 
4. The daily RSI has reached near 61 levels to vacate some more room for an upward movement.
5. On the hourly chart, the bearish cross (09DEMA above 21DEMA) has been retested twice but 50EMA has been respected today also to provide support.
6. The price is quite near 09EMA and 21EMA which might be the third retest of bearish cross (09EMA below 21EMA) formed yesterday.
7. The RSI is below 50 on the hourly chart, exuding bearishness.

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 a lot of CALLs at all the strikes above 17650 while all the strikes have much lesser PUT-OI.
2. Furthermore, the strike of 17700 became a strong resistance with highest CALL-OI there and at all higher strikes. On the contrary, PUT-OI is not competing with that of CALLs at any of the strikes. It suggests that there is a resistance on the upper side but no support in the lower side. 

Nifty 50 Options' Open Interest Data Chart

Nifty 50 FII DII Data

Below is the activity of the institutions on Tuesday, 18 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 options' OI data and institutional activity. Therefore, I think we should avoid taking any trade tomorrow. If you need to take a trade, enter a bearish trade below 17574 and a bullish trade above 17767.