Global cues brought Nifty down but recovered nicely from lower level

On Monday, April 13th, the optimism surrounding a potential long-term ceasefire vanished following a sudden announcement by the American president about a complete blockade of the Hormuz Strait. This announcement over the weekend dampened the global appetite for risk, causing shockwaves in every market. Nifty opened with a gap down of 460 points at 23,590 but quickly began to recover. Throughout the day, it continued to rise, aided by some fresh positive signals from the war front. However, by the end of the trading session, it could not fully recover the 460-point opening loss and closed the day down by 208 points at 23,842. Nifty futures fell even more, closing 242 points lower, indicating the ongoing negative, risk-averse sentiment.

Even though it was a tough day for the bulls, Nifty still managed to close significantly above the EBR/EBL band. The MHAF chart displayed an inside bar pattern but remained green with a lower wick, suggesting the bull run might not be over yet. We will confirm this bias when the market opens on Wednesday.

The spreadsheet also suggests that a new bullish trigger is likely around the 23850-23900 range. However, we have no plans to open a new position in the April series, as we have already secured our profit for this month.

Cheers and happy trading