Nifty 50 Prediction For Tomorrow, 03 May 2023

On Tuesday, the NIFTY 50 opened gapped up at 18124.80. After that traded sideways in the range of 18120-18180 to close at 18136.

Nifty 50 Daily chart with the positioning of important EMAs

In our yesterday's prediction, I suggested to take a bullish trade if price retests the level of 17870 which didn't happen therefore no trade happened today.

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 03 May 2023

1. Although the 09DEMA remains above the 21DEMA, indicating a bullish signal, there is a possibility of a retest since the current market price is 272 points distant from the shorter EMAs.
2. The bullish signal of the Golden Cross, formed by the 50DEMA and 200DEMA, remains intact. 
3. The current price is situated within the resistance zone of 17132-17200 (as visible in the daily chart below), indicating a possibility of downward pressure on prices.
4. With the RSI hovering around 87.45 levels, it indicates both strength and an overbought market position.
5. On the hourly chart, The bullish cross, with the 9EMA positioned above the 21EMA, remains intact. However, the current market price is significantly distant from both EMAs. 
6. Furthermore, a bearish RSI divergence has formed on hourly chart, which could potentially cause a drop in prices.

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

Nifty 50 Options' Open Interest Data as on 02 May 2023

1. On Tuesday, an excellent PUT writing at the 18100 strike has been observed. Additionally, there has been a solid CALL writing at 18200, along with comparable PUT writing at the same strike.  
2. Regarding the outstanding OI data, the 18100 strike price and all lower strikes exhibit good PUT OI, indicating a strong support zone. Conversely, the highest outstanding CALL OI data is at the 18200 level, making it a robust resistance level for at least this week.

Nifty 50 Options' Open Interest Data Chart

Nifty 50 FII DII Data as on 02 May 2023

Below is the activity of the institutions on Tuesday, 02 May 2023.

FII DII Data

This Data is giving bullish signal.

Conclusion

After analyzing the various aspects of Nifty, we have found that the daily exponential moving averages and RSI level indicate bullishness, but there is a possibility of a retest. The hourly chart EMAs also exhibit bullishness, although the distance of the price from EMAs suggests a potential retest. Additionally, the RSI on the hourly chart shows bearish RSI divergence. On a positive note, the FII DII data indicates bullishness, as FIIs have made substantial purchases on Tuesday. Furthermore, options' open interest data suggests that 18100 is a support level, while 18200 is a resistance level. Therefore, it is advisable to avoid any trade until the price retests the daily exponential moving averages. However, if the price goes above today's high, then a bullish entry can be taken with a stop loss below the day's low.

It's worth noting that there was a chance to take a bearish trade during today's closing, but unfortunately, we missed it.