Trade Setup for April 22: Key Developments Ahead of Opening Bell as Iran Talks Intensify Amid Ceasefire Deadline Looms

Nifty 50 Extends Uptrend Amid US-Iran Peace Talks Hopes, Positive Global Cues

The Nifty 50 rose nearly 1 percent on April 21, extending its uptrend for the third straight session as hopes of potential US-Iran peace talks continue to rise, along with positive global cues. The technical setup strengthened further, with the index decisively filling a large bearish gap and sustaining well above medium- and short-term moving averages, alongside further improvement in momentum indicators.

A sustainable move beyond 24,800 is required to regain strong momentum in the upcoming sessions, while immediate crucial support is placed at 24,400. A fall below this level could open the door for 24,200-24,000 levels, experts said.

Key Levels for Nifty 50 and Bank Nifty

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The Nifty 50 formed a bullish candle on the daily timeframe after a day of consolidation, continuing the higher high-higher low structure and filling the bearish gap of March 9, indicating a healthy sign. The index stayed above all medium- and short-term moving averages, with the 10- and 20-day EMAs trending higher and support levels shifting upward. The RSI jumped to nearly 60, at 59.66, while the MACD sustained above the zero line with a bullish crossover, despite a fading green histogram bar.

The Bank Nifty also formed a sizeable green candle while persistently maintaining a higher high-higher low structure, highlighting robust buying interest. Notably, the Bank Nifty managed to close above its 100- and 200-day EMAs, which is a positive technical development and signals improving trend strength, while the short-term moving averages are trending higher. The RSI rose to 59.21, while the MACD stayed above the zero line with a positive crossover and a dark green histogram bar.

Nifty and Bank Nifty Call and Put Options Data

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The 25,000 strike holds the maximum Call open interest for the Nifty, while the 24,000 strike holds the maximum Put open interest. The 57,000 strike holds the maximum Call open interest for the Bank Nifty, while the 57,000 strike holds the maximum Put open interest.

Funds Flow and Put-Call Ratio

The Nifty Put-Call ratio (PCR) climbed to 1.18 on April 21, compared to a 1.13 previous session. The increasing PCR indicates the firming up of a bullish sentiment in the market.

India VIX and Long/Short Positions

The fear index, India VIX, fell 6.69 percent to 17.53 after a spike of over 9 percent in the previous session, providing support to bulls. A long build-up was seen in 86 stocks, while 15 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.

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. SAIL is retained in the F&O ban list.