Morning Mantra - 20th April 2023

Dear All,

So for back to back three trading days we have been observing 3 red candles on the day chart of Nifty. Which is somehow indicating the importance of the 17800 level as well as the importance of the bearish reversal pattern, which was bearish engulfing.

Furthermore, it is a weekly settlement day, today. And on a positive note, on the Day chart of Nifty, we can observe a beautiful formation of Hammer, which is a bullish reversal pattern. So, yes a reversal can be seen in the Market for Today.

However, since huge volatility can be expected here, so it will be suggested to avoid any fresh trade for the day. Wherein, instead of getting trapped, we can review our Portfolio and plan our strategy accordingly.

Therefore, as of now, we are still waiting for the breakout of 17800 level. In the meanwhile 17300 will remain to be the level of stop loss. Since the Market is trading in between these levels, so, Patience will be the key here. Besides, Cherry picking strategy will remain to be a good idea, for now.

Regards,
Alok Daiya
SEBI Registered Research Analyst