Nifty Intraday Update for 19th April 22

Nifty 50 Index started the week on a negative note, in continuation of the prevailing correction phase. After a 280 points gap-down opening (slightly below the ABCD target of 17218) amid weak global cues and lower than expected results from heavyweights like Infosys and HDFC Bank, the Index continued to trade with a negative bias before recovering some of the losses towards the second half, taking a bounce from hourly support. The index is now back to the range of 17000-17450, where it was stuck for 2-3 weeks during last month.
The global cues as well as the outcome of Q4 earnings will continue to add volatility in the coming sessions. Hence, one should remain cautious during the intraday.

India 50 USD Index Analysis
Higher Time Frame (4H): The Index has formed a XABCD pattern and has given an indication of a correction of its downward impulse which started from 17920 levels, taking a bounce from its PRZ level. This level has acted as good support in previous instances as well during last month. A half-bat pattern is formed at 17500 levels which also happens to be the major previous swing high and is an important resistance. Price breaking and sustaining this level can give a good upward momentum, confirming the trend reversal.

Intraday
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Lower Time Frame (1H): Having identified a potential reversal in the higher time frame, we will now drill down into the lower time frame to identify more precise levels for intraday. The index has given a good closing, breaking the downward trendline resistance, and is likely to face its next resistance at 17340, and the day low of 17100 is expected to act as good support (PRZ Levels as per XABCD). We are likely to see a range-bound market if either of the levels is not broken.