Chabra notes that the India VIX which is a measure of implied volatility is at 13.72 and is surprisingly trading at the lower value discounting the impact of news on tariffs uncertainty.
On April 3, traders will be closely watching key levels of 23,565 – 23,650 on the upside (resistance) and 23,136 – 22,980 on the downside (support). Despite the uncertainty surrounding Trump’s tariff announcements, which are expected on April 2 (1:30 pm EST) could potentially impact global markets, traders have noticed a bullish bias in the Indian equity market. Additionally, they note that despite these uncertainties there has been surprisingly low volatility.
Indian equity indices ended higher on April 2. At close, the Sensex was up 592.93 points or 0.78 percent at 76,617.44, and the Nifty was up 166.65 points or 0.72 percent at 23,332.35.
The NIFTY index opened flat on April 2 following the long-bodied bearish candle on April 1st and remained within the previous day’s range.
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors notes that in the previous session (April 2), Nifty witnessed a gap up opening and managed to extend it gain during the initial hours. He adds that we can expect high volatility on April 3 due to the event and opening hour candle close will be crucial.
Additionally, break above 23,350 levels can take prices higher towards 23480 followed by 23600 which can suggest that buying has resumed in the Index. “On the other hand, a break below 23130 levels can further extend profit booking in the Index. Also, as per OI data 23500 has the highest OI on the calls side whereas 23000 strike has highest OI on the puts side suggesting Nifty to trade in a wide range,” he adds.
Kayal suggests buying Nifty at 23,100 CE if it crosses above 255, with a stop loss at 175 and a target of 335, followed by 410 levels.
Preeti K Chabra, Founder, Trade Delta notes that the RSI on the daily chart is trading at 56.82 and has taken some support with some bullish bias. In the weekly options chain, she notes that unwinding is observed in in-the-money (ITM) puts and calls, indicating indecisiveness ahead of Donald Trump Tariff announcement. “The market is highly sentiment driven, with global news playing a crucial role in influencing its movements,” she adds.
Chabra notes that the India VIX which is a measure of implied volatility is at 13.72 and is surprisingly trading at the lower value discounting the impact of news on tariffs uncertainty.
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With NIFTY stuck within the range of the mother candle, Chabra says that a decisive trade is expected only if the index breaks above 23,400 or below 23,136.
As a trading strategy, Chabra suggests to sell Nifty Futures if a 15-minute candle closes decisively below 23,136, with a target of 22,980 and a stop loss set at 23,220. On the other hand, buy Nifty Futures if a 15-minute candle closes above 23,400, targeting 23,565 with a stop loss at 23,300.