Nifty 50 Prediction For Tomorrow, 21April 2023

The Nifty 50 traded sideways today. It opened at 17638, made a high of 17683 immediately, and then traded sideways in the range of 17590-17640,  to close at 17625. 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. Upon looking at the daily chart, we see that the bullish cross (09DEMA above 21DEMA) and Golden cross (50DEMA and 200DEMA) are intact, meaning that bullish sentiment is still intact.

2. It also shows that the 09DEMA has been respected today as well, like the previous three days, which is also a sign of bullishness.

3. The daily chart also shows that the 7-length RSI on the daily chart is reversing upwards, hinting for an upward movement.

4. The hourly chart shows that the Bearish Cross (09EMA below 21EMA) is well respected and the price closed at the retest level, from where index might fall again.

5. The RSI had gone above 50 levels but, later in the day, it went below that level again. So, it is also indicating bearishness.

6. Further, it is also evident that the level of 17575-17585 has worked as a support in the last two trading sessions, which resists us from taking a bearish trade.

Nifty 50 hourly chart with the placement of hourly EMAs

Nifty 50 Options' Open Interest Data

1. The OI-addition chart shows that there has been a wonderful call unwinding on Thursday which surely would have been due to expiry. Therefore, it doesn't signal anything to me.
2. Looking at outstanding OI data, it is evident that 17600 and 17650 are holding the highest PUT and CALL OI respectively. Further, the second highest OI addition is at the PUT of 17500 and CALL of 17700. These OI figures are telling that this zone is a tussle zone and the index might be stuck here for a little longer time. 

Nifty 50 Options' Open Interest Data Chart

Nifty 50 FII DII Data

Below is the activity of the institutions on Thursday, 20 April 2023.

FII DII Data

This Data is giving bearish signal.

Conclusion

After studying all the points of our Nifty analysis, we find that the longer-term (daily) chart is evincing bullishness while the shorter-term (hourly) chart and institutional figures are showing bearishness. And if we see the options open interest data that is indicating sideways movement. Therefore, we shall avoid entering a trade until the price is between 17500 and 17700. If there happens to be a breakdown or break out, we shall think of entering a trade accordingly. Also, as I mentioned yesterday, if the index forms a green daily candle near 17550-17650, we shall bet for a bullish trade for a slightly longer duration.