Oil Prices to Remain in Focus on April 23 Amid Strait of Hormuz Closure

Nifty 50 Snaps Three-Day Winning Streak, Oil Prices Come into Focus

On April 22, the Nifty 50 index snapped its three-day winning streak, closing 0.8 percent lower. The technical setup suggests a subdued near-term trend, but the broader structure remains positive. Market participants will be closely watching oil prices, which are trading around $100 a barrel again due to the closure of the Strait of Hormuz and the continuation of the US blockade in the waterway.

Key Levels to Watch

The 24,200 level, which is the 50-day exponential moving average (EMA), is a key level to watch. A fall below this level could drag the Nifty 50 down to the 24,100-23,900 zone. However, the 24,500-24,600 range is expected to act as a key hurdle, and only a convincing move above it can drive the index toward 24,800 (200-day EMA), according to experts.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Nifty 50 Technical Analysis

The Nifty 50 formed a bearish candle with a minor upper shadow on the daily charts, indicating intraday selling at higher levels and the presence of a crucial hurdle around the 24,400-24,500 zone. However, the bullish pattern of higher tops and higher bottoms continued, and the index held well above short- and medium-term moving averages, with the 10- and 20-day EMAs trending upward. The Relative Strength Index (RSI) declined but stayed above the reference line, while the Moving Average Convergence Divergence (MACD) sustained above the signal and zero lines, although the green histogram bars faded slightly.

Bank Nifty Technical Analysis

The Bank Nifty traded within the previous day's range and formed a small-bodied bearish candle with an upper shadow on the daily charts, indicating selling pressure at higher levels. However, it remained above the 100- and 200-day EMAs for the second consecutive session. The index has already been trading above medium- and short-term moving averages, with the 10- and 20-day EMAs trending higher and the 10-day EMA inching closer to the 50-day EMA.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Options Data

Funds Flow and Put-Call Ratio

The Nifty Put-Call ratio (PCR) fell to 1.02 on April 22, compared to a 1.18 previous session. The increasing PCR indicates traders are selling more Put options than Call options, which generally indicates a firming up of a bullish sentiment in the market.

India VIX

The India VIX rose 4.38 percent to 18.3, signaling some discomfort for bulls. Overall, it has been in the 16.5-19 range for the past five consecutive sessions. Bulls may be at risk if the VIX spikes above the 20 level. However, a decisive fall below the 16 level could bring comfort to the bulls.

F&O Data

Stocks Under F&O Ban

Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.

• Stocks added to F&O ban: Nil
• Stocks retained in F&O ban: SAIL
• Stocks removed from F&O ban: Nil