Nifty 50 Trading view for 02 May 2023
Updated
Nifty50 closed 18065 as FIIs cash purchase was 3304.3 CR and DIIs bought 264.3 CR (Net positive of 3568.6). SGX nifty signals a gap up.
Today the market is expected to be in the range of 18100 on the upper side and 17800 on the lower side.
Short-Term Levels:
Resistance: 67.99 LAC Call OI buildup @ 18200 level
Support: 99.1 Lacs Put OI buildup @ 18000 level (STRONG SUPPORT @ 17800 LEVEL - 88.45 LAC)
17800 still seems to be a crucial support level (make or break level)
Do keep a close watch on these levels and nearby strike prices to determine the next move in the market.
It is important to keep a close watch on VIX as it's low (10.95%). An increment in VIX will indicate uncertainty in the market, further causing the Index to dip. Any negative news can impact this.
The overall sentiment is bullish, but it's important for the index to retain its position above 17800 levels and cross 18233 levels to see further upside. Suggested to trade in limited quantities with strict stop loss or hedging strategy.
Chart Pattern:
The index witnessed a breakout from the cup and handle pattern on the charts. A large green candle with a short wick at the bottom indicates confidence in the market and further upside. Also, the index is above 200 DMA, which signals a positive sign. The index must cross the 18233 level to see a further upside of 18500.
Possible Trading Levels:
UPSIDE TRADE:
Buy only above 18080 >>>>> Buy ITM 18050 CE. (TGT 18130 | SL 18030)
DOWNSIDE TRADE:
Sell only below 17980 >>>>> Buy ITM 18050 PE (TGT 17930 | SL 18050)
Things to account for 02 May 2023:
1. FED set to raise Interest rates to 16-year high and debate a pause - as per WSJ projection. Any further increase in FED rates which is scheduled to be declared on 3rd May can impact the index. The Fed raised the fed funds rate by 25bps to 4.75%-5% in March 2023, matching the February increase, and pushing borrowing costs to new highs since 2007, as inflation remains elevated. The decision came in line with expectations from most investors although some believed the central bank should pause the tightening cycle to shore up financial stability. There could be speculation in the market today and tomorrow about the FED Interest Rate Decision.
2. DOW JONES Down -56.11, OR -0.16 PERCENT, AT 34042 despite opening positive 34,139.81. This can have a bearing on today's trade as further upside will be based on global cues.
3. U.S ISM MANUFACTURING EMPLOYMENT (APR) ACTUAL: 50.2 VS 46.9 PREVIOUS; EST 47.9. This is positive news.
4. U.S MANUFACTURING PMI (APR) ACTUAL: 50.2 VS 50.4 PREVIOUS; EST 50.4. This is positive news.
Trading is risky, and it is advised to consult a financial advisor prior to trading. These are purely my opinion based on my trading experience and exercise caution while trading. Many of these strategies are subject to adjustments as per market movements as markets are dynamic and change due to several factors.
If you require a financial advisor to assist you with investing or trading needs, please contact us using the comments section.
HAPPY TRADING!!!
Today the market is expected to be in the range of 18100 on the upper side and 17800 on the lower side.
Short-Term Levels:
Resistance: 67.99 LAC Call OI buildup @ 18200 level
Support: 99.1 Lacs Put OI buildup @ 18000 level (STRONG SUPPORT @ 17800 LEVEL - 88.45 LAC)
17800 still seems to be a crucial support level (make or break level)
Do keep a close watch on these levels and nearby strike prices to determine the next move in the market.
It is important to keep a close watch on VIX as it's low (10.95%). An increment in VIX will indicate uncertainty in the market, further causing the Index to dip. Any negative news can impact this.
The overall sentiment is bullish, but it's important for the index to retain its position above 17800 levels and cross 18233 levels to see further upside. Suggested to trade in limited quantities with strict stop loss or hedging strategy.
Chart Pattern:
The index witnessed a breakout from the cup and handle pattern on the charts. A large green candle with a short wick at the bottom indicates confidence in the market and further upside. Also, the index is above 200 DMA, which signals a positive sign. The index must cross the 18233 level to see a further upside of 18500.
Possible Trading Levels:
UPSIDE TRADE:
Buy only above 18080 >>>>> Buy ITM 18050 CE. (TGT 18130 | SL 18030)
DOWNSIDE TRADE:
Sell only below 17980 >>>>> Buy ITM 18050 PE (TGT 17930 | SL 18050)
Things to account for 02 May 2023:
1. FED set to raise Interest rates to 16-year high and debate a pause - as per WSJ projection. Any further increase in FED rates which is scheduled to be declared on 3rd May can impact the index. The Fed raised the fed funds rate by 25bps to 4.75%-5% in March 2023, matching the February increase, and pushing borrowing costs to new highs since 2007, as inflation remains elevated. The decision came in line with expectations from most investors although some believed the central bank should pause the tightening cycle to shore up financial stability. There could be speculation in the market today and tomorrow about the FED Interest Rate Decision.
2. DOW JONES Down -56.11, OR -0.16 PERCENT, AT 34042 despite opening positive 34,139.81. This can have a bearing on today's trade as further upside will be based on global cues.
3. U.S ISM MANUFACTURING EMPLOYMENT (APR) ACTUAL: 50.2 VS 46.9 PREVIOUS; EST 47.9. This is positive news.
4. U.S MANUFACTURING PMI (APR) ACTUAL: 50.2 VS 50.4 PREVIOUS; EST 50.4. This is positive news.
Trading is risky, and it is advised to consult a financial advisor prior to trading. These are purely my opinion based on my trading experience and exercise caution while trading. Many of these strategies are subject to adjustments as per market movements as markets are dynamic and change due to several factors.
If you require a financial advisor to assist you with investing or trading needs, please contact us using the comments section.
HAPPY TRADING!!!
Trade closed: target reached
TARGET ACHIEVED: 18130 (TOUCHED HIGH OF 18180)Book PROFIT
UPSIDE TRADE:
Buy only above 18080 >>>>> Buy ITM 18050 CE. (TGT 18130 | SL 18030)
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