22 April 2024 trade setup : IT stocks in focus | NIFTY50 | Bank NIFTY | HDFC shares
Explore Monday's trading setup with Upstox as we delve into the market trends.
Friday saw a gap-down start for NIFTY, followed by a sharp recovery from the day’s low. The index managed to recapture the 22,000 mark on a closing basis, just below its 50-day moving average.
Support zone: 21,700-21,800 Resistance zone: 22,400-22,500
After a recent 4% fall, NIFTY formed a bullish piercing pattern on the daily chart on Friday. This reversal pattern awaits confirmation, with today's closing pivotal for validation.
Open interest reveals significant call OI on the 22,500 strike for the 25th April expiry, acting as resistance. Meanwhile, the highest put base resides at 22,000. Given the recent spike in volatility, traders should remain vigilant and craft strategies to navigate sharp swings.
Turning to BANK NIFTY, Friday also commenced with a gap down, but the index witnessed a recovery of over 2% from its intraday low. It reclaimed the crucial 47,500 level on a closing basis, accompanied by the formation of a bullish piercing candle on the daily chart. Additionally, both the 20 and 50-day moving averages were reclaimed.
Support zone: 46,500-46,700 Resistance zone: 48,000-48,200
In terms of open interest, the 48,000 and 48,500 strikes for the 24th April expiry hold the highest call OI, potentially acting as resistance. Conversely, the 47,000 and 47,500 strikes accumulate the highest put base.
Traders should remain attentive to market reactions amid ongoing geopolitical tensions and upcoming results, particularly those of HDFC Bank, which may have a ripple effect across the banking sector.
Lastly, let's spotlight potential stock actions for today:
Long build-up observed in Escorts Kubota, Jindal Steel, Indus Towers, and Trent.
Short build-up identified in Tata Communications, Aurobindo Pharma, Cummins India, and Bajaj Auto.
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