Nifty 50 Prediction For Tomorrow, 20 April 2023

The Nifty 50 traded bearish today also. It opened at 17653, traded sideways to bearish in the range of 17615-17670 by 01:15 PM. Later index fell to make a low of 17580 and then recovered a bit to close at 17612. This move was completely inline with our yesterday's prediction. 

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 bullish cross (09DEMA above 21DEMA) is intact and 21DEMA has been retested today again, confirming that the bullishness is still intact.
2. The bullish Golden Cross (50DEMA above 200DEMA) is intact and price is quite nearby both DEMAs. 
3. The price had broken above the down-trendline on 11 April 2023 and that trendline is working as support for last three days. 
4. The daily RSI has reached near 55 levels, making some more room for an up-move.
5. On the hourly chart, the bearish cross (09DEMA above 21DEMA) has been retested thrice and 50EMA has also been violated, exuding bearishness.
6. There is a Bullish RSI divergence formation on hourly chart.
7. The RSI is below 50 on the hourly chart, exuding bearishness.

Nifty 50 Options' Open Interest Data

1. The option-writers have added good CALLs at and above 17650 but PUT-OI is not much at any of the strikes.
2. On the outstanding data, the level of 17650-17700 became a strong resistance with the wonderful CALL-OI there and above. On the contrary, PUT-OI is no good to provide any kind of support. it means data is suggesting bearishness. 

Nifty 50 Options' Open Interest Data Chart

Nifty 50 FII DII Data

Below is the activity of the institutions on Wednesday, 19 April 2023.

FII DII Data

This Data is giving neutral signal.

Conclusion

Our today's Nifty analysis advises that the placement of all exponential moving averages on daily chart is indicating bullishness while the same EMAs on hourly chart along with the options' OI data are suggesting bearishness. Therefore, its good to avoid trading tomorrow as well. Further, if there happens to be a breakdown below 17574, we can think of entering a bearish trade. And if index forms a green daily candle near 17550-17650, it'll be a great opportunity for a bullish trade.