Nifty 23rd April 2021: Technical Analysis and Stock Market View
On the 23rd of April 2021, the Indian stock market experienced significant volatility as derivatives of the May 2021 Nifty approached their expiration date. Despite the intraday turbulence, Nifty managed to breach its opening level, suggesting that the current upward trend may continue into the next trading session. However, while the daily candle did not strongly indicate a continuation of the bull market, a range-bound trade with a positive bias is anticipated.
Bank Nifty’s Bullish Outlook
Bank Nifty saw an impressive performance today, gaining nearly 500 points intraday, which adds another layer to the optimism surrounding the stock market. The formation of a strong bullish candle in its daily chart further reinforces the possibility of a continuation of the positive trend for Bank Nifty in the near future.
Disclaimer
It is crucial to remember that the information provided is not a buy/sell recommendation. Always consult with a financial advisor before making any investment decisions.
Nifty’s Wedge Pattern and Potential Breakout
On the 1-hour time frame, Nifty has formed a wedge pattern, indicating potential breakout activity. This suggests that the market could move either upwards or downwards based on local and global factors in the upcoming trading session. Currently, Nifty is closed on the major resistance level at 15330, prompting traders to only consider an upside breakout for further momentum.
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Current Bearish vs Bullish Sentiment
Today, news papers maintain a bearish outlook, while my analysis leans towards a bullish perspective. I predict that Nifty may gap up shortly. Traders should consider entering positions when prices reach 15350. For options traders, buying 15300 CE and 15400 PE can be considered as part of today's strategy. Profits can be booked once there is a 100-point move.
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Disclaimer
Again, I emphasize that the advice provided is not a buy/sell recommendation. Investors must consult with their financial advisors before making any investment decisions.