Global cues brought Nifty down but recovered nicely from lower level

On Monday 13th April, the positive sentiment of a probable longer term ceasefire evaporated with a sudden announcement of complete blockage of Hormuz Strait by the American president. This announcement over the weekend dampened the risk taking mood globally hence the shock wave was observed in every market. Nifty opened gap down by 460 points at 23590 but quickly started recovering from there. Throughout the day it kept on moving higher along with some fresh positive cues coming from the war front. However, by the end of the trading session, it failed to completely recover the 460 points opening loss and closed for the day by losing 208 points at 23842. Nifty futures lost more and closed at 242 points lower indicating the persistence of negative, risk off sentiment.

Despite this bad day for the bulls, we could see Nifty still closing much higher above the EBR/EBL band. The MHAF chart formed an inside bar type patter but still in green and with a lower wick indicating the bull run is not probably over yet. We will have a confirmation of this bias on Wednesday market opening.

The spreadsheet is also indicating that a fresh bullish trigger is eminent around 23850-23900 range, however, we do not have any intention to open new position in the April series because we have booked our profit for this month.

Cheers and happy trading