Asian markets are expected to open cautiously on Tuesday April 18 2023, with Japanese equities set for a small advance, while Hong Kong and Australia are likely to see slight declines.
Nifty, the Indian stock market index, formed a long red candle with a lower shadow, indicating a short-term reversal on the downside.
Chartists recommend that Nifty should hold above 17,717 zones to extend the move towards 17,850 and 18,000 zones, while on the downside, supports are placed at 17,620 and 17,500 marks.
Option data suggests a shift in the trading range between 17,400 and 18,000 zones, with an immediate shift in trading range between 17,500 and 17,850 zones.
Bulls should focus on 17,800-17,870 as immediate resistance zones and 17,600-17,500 as key support zones. Fresh buying momentum could be seen only above the levels of 17,870.
The BSE Sensex fell 520 points to 59,911, and the Nifty50 declined 121 points to 17,707. The trend is likely to remain sideways, and on the lower end, support lies at 17,550.
On the higher end, 17,800 is likely to remain resistance for the Nifty. The volatility crossing 13 levels during the day gave discomfort to bulls.
The Bank Nifty remained positive, rising 130 points to 42,263. The index has formed a bearish candlestick pattern on the daily timeframe, and downside support stands at 42,000-41,800.
The maximum Call open interest (OI) was at 18,000 strikes, with 90.73 lakh contracts, followed by 17,700 strike with 85.24 lakh contracts and 17,800 strikes with more than 84.9 lakh contracts.
Overall, traders should remain cautious as the trend is expected to remain sideways, with key support and resistance levels to watch out for. Bulls should focus on immediate resistance and support zones, and fresh buying momentum could be seen only above specific levels.
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