Nifty Prediction Today—April 12, 2024: Crucial support coming up. Stay out of the market

Nifty 50 April Futures (22,692)

Nifty 50 is trading lower, tracking weak global cues. The index is trading at 22,655, down 0.42 per cent. The advance/decline ratio is at 15:35. This indicates weakness in the index. As such more fall could be on the cards during the day.

Nifty 50 index outlook

Nifty has support near current levels at 22,630. A break below it can take the index down to 22,530-22,500. The 22,530-22,500 range is a crucial and a strong support zone. We expect the Nifty to sustain above 22,500 and bounce back again. A strong bounce from around 22,500 can take the Nifty back up to 22,800 in the coming days.

The macro picture will turn negative only if the Nifty declines below 22,500. In that case, a fall to 22,200 will come into the picture.

Global indices

In Asia, barring the Nikkei 225 (39,625, up 0.46 per cent), all other major indices are in red. Hang Seng (16,799) is beaten down the most. The index is down 1.7 per cent. Kospi (2,687) is down 0.72 per cent. Shanghai Composite (3,033) is flat.

The Dow Jones Industrial Average (38,459) fell sharply to an intraday low of 38,197 on Thursday but managed to recover almost all the losses from there. The broader picture is negative as long as the index stays below 39,000. We can expect the Dow Jones to touch 38,000 and even lower levels in the coming days.

Nifty 50 futures

The Nifty 50 April Futures (22,692) is down 0.5 per cent. The contract has a very crucial support at 22,670. Whether it breaks below this support or not will determine the next move.

A break below 22,670 will be bearish. It can drag the contract down to 22,600 and even to 22,500.

On the other hand, a bounce from around 22,670 will keep intact the overall bullishness. Such a bounce will take the Nifty 50 April futures contract up to 22,800-22,900 again.

So, the price action around 22,670 will need a very close watch now.

Trading strategy

We suggest traders to stay out of the market today. See what is happening to the support at 22,670 and how the index closes for the week today. Trades can be taken accordingly next week.

Supports: 22,670, 22,700.

Resistances: 22,750, 22,830

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