Trade Setup for Monday: Key Points to Consider Before the Opening Bell

A brief accumulation was observed in 57 stocks, such as L&T Technology Services, Bata India, Biocon, Bajaj Auto, and M&M Financial Services. Following a robust rebound from the day’s low and the emergence of bullish patterns like the Bullish Piercing Line and Double Bottom on April 19, experts suggest that the market may have completed its correction phase and could witness further recovery in upcoming sessions. They anticipate immediate resistance levels around 22,200-22,300, with 22,000 serving as a crucial support for the Nifty 50.

From a fundamental standpoint, experts do not foresee significant escalation in the Iran-Israel conflict, as evidenced by Brent crude futures trading below $90 a barrel.

On April 19, the BSE Sensex rallied nearly 1,300 points from its intraday low to close with a gain of 599 points at 73,088, while the Nifty 50 climbed 151 points to reach 22,147.


According to technical analysis, a long bullish candle formed on the daily chart indicates a potential short-term bottom reversal, with the Nifty maintaining support around the 21,750 level, resembling a double bottom pattern. Positive divergence on the hourly momentum indicator, coupled with bullish price action, suggests further upside potential, with immediate resistance seen at 22,300 – 22,500 levels and support at 22,000 levels.

Despite heightened volatility, the India VIX settling below the 14 mark offers some reassurance for bulls, although the index has risen for the fifth consecutive session.

Based on the pivot point calculator, the Nifty 50 may find immediate support levels at 21,881, 21,786, and 21,633, while resistance levels are anticipated at 22,184, 22,283, and 22,437.

The Bank Nifty also staged a significant recovery on April 19, ending with gains of 505 points or 1.07 percent at 47,574. A long bullish candlestick pattern formed on the daily charts, supported by the 100-day EMA. Analysts predict further recovery towards 48,500, with support levels at 47,000.

Pertaining to options data, the maximum Call open interest was observed at the 23,000 strike, indicating a key resistance level for the Nifty. On the Put side, the 22,000 strike held the maximum open interest, serving as a significant support level. Notable Call writing was seen at the 22,500 strike, while meaningful Put writing occurred at the 21,800 strike.

In terms of stock performance, Pidilite Industries, JK Cement, Torrent Pharma, Divis Laboratories, and HCL Technologies witnessed high delivery percentages among F&O stocks.

Investors will closely monitor quarterly earnings announcements on April 22, including those from Reliance Industries, Wipro, HDFC Asset Management Company, Jio Financial Services, Indian Renewable Energy Development Agency, and National Fertilizers.

Foreign institutional investors (FIIs) net bought shares worth Rs 129.39 crore, while domestic institutional investors (DIIs) sold Rs 52.50 crore worth of stocks on April 19, as per provisional data from the NSE.

Biocon has been added to the F&O ban list for April 22, while Balrampur Chini Mills, Bandhan Bank, Exide Industries, Vodafone Idea, Metropolis Healthcare, Piramal Enterprises, SAIL, and Zee Entertainment Enterprises remain on the list. GNFC, Hindustan Copper, and National Aluminium Company have been removed from the said list.

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