Nifty 50 Declines 0.8% as Strait of Hormuz Tensions Lift Oil Prices

Nifty 50 Declines 0.8% as Strait of Hormuz Tensions Lift Oil Prices

Nifty 50 corrected 0.8% amid Strait of Hormuz tensions lifting oil prices.

The Nifty 50 extended its downtrend, correcting 0.8 percent for the second consecutive session on April 23, amid ongoing tensions at the Strait of Hormuz and US-Iran negotiations that kept oil prices above $100 a barrel. The index fell below the 50-day EMA, a key medium-term support level. As long as the index sustains below 24,600, consolidation with range-bound trading may persist, with immediate crucial support at 24,000–23,900. A convincing move above 24,600 could open the door for 24,800, which coincides with the 200-day EMA and acts as a key resistance level.

The Bank Nifty dropped 1.4 percent after a gap-down opening, forming a bearish candle and slipping below its 100- and 200-day EMA levels. The maximum Call open interest for the Nifty was at the 24,500 strike, while the maximum Put open interest was at the 24,000 strike. The Nifty Put-Call ratio declined to 0.92, indicating a bearish mood in the market. The fear index, India VIX, rose 1.58 percent to close at 18.59, signaling discomfort for bulls.

Source: https://www.moneycontrol.com/news/business/markets/trade-setup-for-april-24-top-15-things-to-know-before-the-opening-bell-as-strait-of-hormuz-tensions-lift-oil-prices-13897922.html

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