Nifty and Banknifty Prediction for tomorrow, April 20, 2023: The Indian equity market had a subdued ending today. For a third session in a row, the market closed negatively today. The significant selloff in the IT and PSU Bank indices dented the overall sentiment of the market. On a closing basis, however, both the Nifty and the Banknifty managed to keep 17600 and 42000, respectively. Given that tomorrow is the weekly F&O expiry, it is crucial to determine whether or not there will be follow-up selling.
The Nifty Metal index, which increased by 0.53% today, was the largest sectoral gainer on the NSE. On the other hand, the Nifty IT index was the biggest sectoral loser of the day with a downturn of 1.77%.
The Nifty Midcap and Nifty Smallcap indexes also couldn’t sustain their gains today, showing minor dips of 0.09% and 0.10%, respectively.
Nifty and Banknifty Movement of the Day
| Index Value | Change | Percentage Change | Open | High | Low |
|---|---|---|---|---|---|
| 17,618.75 | -41.40 | -0.23% | 17,653.35 | 17,666.15 | 17,579.85 |
| 42,154.00 | –111.20 | –0.26% | 42,280.10 | 42,339.90 | 42,022.15 |
Today’s closing prices for the Nifty and Banknifty indices were 17,618.75 and 42,154.00, respectively. The Banknifty also ended in the red, down 111.20 points, or 0.26%, while the Nifty fell 41.40 points or 0.23%.
Nifty and Banknifty had been trading in a narrow range throughout the morning. But the second half saw a sharp decrease due to the intensified selling of technology stocks. Although Nifty and Banknifty hit intraday lows of 17,579.85 and 42,022.15, respectively, they were able to settle above the crucial support levels in the end.
Nifty 50 and Nifty Bank rebounded until the market closed after finding support in critical areas like 17580 and 42000.
Top Nifty 50 Gainers of the Day
| Company Name | Stock Price | Price Change | Change (%) |
|---|---|---|---|
| Divis Laboratories Ltd | 3,342.6 | 72 | 2.20% |
| Bharat Petroleum Corporation Ltd | 342 | 7.20 | 2.15% |
| Bajaj Auto Ltd | 4,265.8 | 56.55 | 1.34% |
| Axis Bank Ltd | 873.4 | 10.05 | 1.16% |
| Mahindra & Mahindra Ltd | 1,215.5 | 10.80 | 0.90% |
| Eicher Motors Ltd | 3,289.6 | 26.05 | 0.80% |
| Housing Development Finance Corporation Ltd | 2,744.8 | 21.10 | 0.77% |
| Bharti Airtel Ltd | 764.65 | 4.90 | 0.64% |
| Bajaj Finance Ltd | 5,947.75 | 32.10 | 0.54% |
| Reliance Industries Ltd | 2,352 | 11.65 | 0.50% |
Top Nifty Bank Gainers of the Day
| Company Name | Stock Price | Price Change | Change (%) |
|---|---|---|---|
| Axis Bank Ltd | 873.40 | 10.05 | 1.16% |
| Bandhan Bank Ltd | 214.35 | 1.05 | 0.49% |
| HDFC Bank Ltd | 1,665.70 | 6.10 | 0.37% |
| Federal Bank Ltd | 131.70 | 0.05 | 0.04% |
Nifty prediction for tomorrow 20th April 2023
The one-hour Nifty chart shows that support was once again reached today at around 17,570. Nifty is still trading below all of its hourly EMAs, with the exception of the 200-day EMA. This also points to a weakness in the chart that is producing a triangle and rounding top pattern.
Now, for the Nifty, tomorrow’s trading session will be largely determined by today’s low. A brief bounce towards 17700 is possible unless and until Nifty breaks and sustains below the support of 17570.
However, Nifty can exhibit a ferocious negative move if it breaks through and maintains a level below 17570 on an hourly basis. Nifty is getting support at that level as it has been consolidating over the past few trading sessions. Therefore, the collapse of that support zone could accelerate the decline towards 17300.
Nifty 50 Upside and Downside Levels for Tomorrow
| Nifty Upside Levels | ||
| 17670 | 17705 | 17760 |
| Nifty Downside Levels | ||
| 17580 | 17500 | 17470 |
Banknifty prediction for tomorrow 20th April 2023
According to the Nifty Bank’s hourly chart, it continues to exhibit strength when compared to the Nifty 50. Banknifty moved today towards 42000, but it was able to hold the area at the closing. The hourly chart’s primary trend is still upward, but a pullback rally towards the breakout zone at 41600 cannot be ruled out.
Although the Banknifty must hold at 42000 for a further gain tomorrow, the chart structure appears robust. If we look at the downside likelihood, it needs to drop below 42000 on an hourly basis to witness a new wave of selling towards 41700-41600-41200.
Nifty Bank Upside and Downside Levels for Tomorrow
| Banknifty Upside Levels | ||
| 42350 | 42500 | 42650 |
| Banknifty Downside Levels | ||
| 42000 | 41850 | 41670 |
Nifty and Banknifty Weekly Options Chain Analysis
Based on the options data for tomorrow’s weekly expiry, it appears that NIFTY and BankNifty may trade in a narrow range. The open interest is highest at 17700 calls and 17500 puts for NIFTY, and there is call writing across all nearby call options, while put writing is seen below the 17500 put level.
For BankNifty, there is heavy call writing across nearby call options and significant put writing from the 42000 put to lower levels. Therefore, it is suggested that both indices may remain range-bound with certain levels acting as support.
Global Markets Update
Today, Asian markets had a mixed performance, with Shanghai, Kospi, and Nikkei 225 all declining by 0.18%, 0.68%, and 0.16%, respectively. The Taiwan index and Hang Seng index also saw declines of 0.62% and 1.37%, respectively.
Meanwhile, the CAC increased by 0.21%, while other European markets like the DAX and FTSE were flat or slightly negative.
In the US, following earnings announcements from Netflix and Morgan Stanley, investors are concerned about the Federal Reserve’s upcoming interest rate move, causing a decline in the stock market.
The S&P 500 and NASDAQ Composite remain unchanged, while the Dow Jones Industrial Average is down by 0.21%. Treasury yields have increased on the assumption that the Fed will maintain higher rates for a longer period. Futures traders expect another quarter-point rate increase when the central bank meets in May.
Conclusion
Overall, the market sentiment suggests a potential range-bound movement, with any upside being capped due to the heavy call writing in all call options. As the weekly F&O expiry will take place tomorrow, the Indian equity market may also exhibit volatility. So, one can keep an eye on those Nifty and Banknifty levels given above.
The overall outlook for the market will have flat to negatively biased for tomorrow. The trading mantra for tomorrow will thus be to place a counter-bet on crucial levels.
Stay tuned for tomorrow’s weekly expiry, and happy trading!
Please note that all levels discussed above, including those for Nifty and Banknifty, are spot prices.
Chart Credit: Chartink
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