Trade Setup for April 4: Nifty 50 Eyes 23,800 if Support at 23,130 Holds

Introduction

The trade setup for April 4 suggests that the Nifty 50 could witness further upside if it sustains above the critical support level of 23,130. However, immediate resistance at 23,400 (200-day EMA) may cap gains in the near term. A breakout above 23,650 could pave the way for a rally toward 23,800.

This analysis provides a deep dive into key technical levels, options data, institutional activity, and global cues to help traders make informed decisions.

Key Takeaways for Trade Setup for April 4

1. Nifty 50 must hold 23,130 (38.2% Fibonacci retracement & 20/50-day EMA) for bullish momentum.
2. Resistance levels: 23,400 (200-day EMA), 23,650, and 23,800.
3. Bank Nifty remains strong, trading above all key EMAs.
4. FIIs continued selling, while DIIs remained net buyers.
5. Global markets slumped due to trade war fears, impacting sentiment.

1. Nifty 50 Technical Analysis for Trade Setup for April 4

Key Levels

Chart Patterns & Indicators

• Candlestick Formation: Bullish candle with an upper shadow (indicates rangebound movement).
• Bollinger Bands: Nifty is sustaining in the upper band, suggesting bullish bias.
• RSI (Relative Strength Index): At 54.49, slightly tilted downward but not oversold.
• MACD: Above the zero line but losing momentum.

Pivot Levels for Intraday

2. Bank Nifty Analysis (Spot: 51,597) for Trade Setup for April 4

Key Levels

Technical Observations

• Trend: Above all key EMAs (10, 20, 50, 100, 200-day).
• Volume: Higher than average, indicating strong participation.
• Candlestick: Long bullish candle, suggesting bullish momentum.

Pivot Levels for Intraday

3. Options Data Analysis

Nifty Call & Put Open Interest (OI)

Key Observations:

• Max Call OI at 24,000 (resistance).
• Max Put OI at 23,000 (support).
• PCR (Put-Call Ratio) at 1.12, indicating bullish sentiment.

Bank Nifty Call & Put OI

Key Observations:

• Strong Put writing at 50,000 (support).
• Call resistance at 53,000.

4. Institutional Activity & Market Sentiment

FII & DII Data (April 3)

India VIX (Fear Index)

• Current Level: 13.60 (-0.89%)
• Above short-term EMAs, indicating some caution.

5. Global Market Cues for Trade Setup for April 4

Key Indices Performance (April 3-4)

Commodities & Forex

6. Stocks to Watch

High Delivery Percentage (Investor Interest)

• Reliance, HDFC Bank, ICICI Bank, Infosys

F&O Ban List

• No stocks are under the F&O ban as of April 4.

7. Trade Setup for April 4

Nifty 50

• Bullish Case: If holds 23,130, expect move toward 23,400-23,650.
• Bearish Case: Break below 23,130 could lead to 23,000-22,900.

Bank Nifty

• Strong support at 51,000, resistance at 51,883-52,000.
• Buy on dips if holds above 51,500.

Conclusion: Trade Setup for April 4

The trade setup for April 4 suggests cautious optimism for the Nifty 50, provided it sustains above 23,130. Global cues remain weak, but domestic institutional support may cushion the downside. Traders should watch 23,400-23,650 for breakout opportunities, while keeping an eye on FII flows and global market trends.

By analyzing technical levels, options data, and institutional activity, traders can make informed decisions in a volatile market.

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