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Trade setup for April 21: NIFTY50 forms doji pattern on daily chart, can it bounce back?

WhatsApp Image 2025-01-20 at 11.25.23.jpeg
By Rohan Takalkar

2 min read | Updated on April 21, 2026, 08:19 IST

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SUMMARY

The NIFTY50 index formed a doji candlestick pattern on Monday, indicating indecision on the direction of the market. The GIFT NIFTY futures opened 48 points lower on Tuesday morning, suggesting a negative opening for Indian markets.

As many as 47 stocks declined, while only 3 were trading in the green during the opening session on the NIFTY50 index. Image: Shutterstock

GIFT NIFTY futures indicate a weak opening for NIFTY50 on Tuesday. Image: Shutterstock.

The second round of negotiations is in limbo as Iran remains defiant. Meanwhile, crude oil prices steadied near $94 per barrel on Tuesday morning, awaiting the outcome of the talks.

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The US markets retreated from the record high levels as investors reassessed the risks of the West Asia crisis. The NASDAQ and the S&P 500 closed 0.2% lower, while the Dow Jones remained largely unchanged.

Asian markets opened mixed, seemingly shrugging off the uncertainty around the second round of negotiation talks with the US. Japanese Nikkei and Korean Kospi indices jumped over 1% on Tuesday morning, led by a rally in tech stocks. Meanwhile, the SSE was trading lower, and the Hang Seng was nearly flat.

GIFT NIFTY futures traded 45 points lower at 7:30 am on Tuesday, indicating a negative opening for the Indian markets on Tuesday.

NIFTY50

![Nifty 50_2026-04-21_06-59-39.png](https://assets.upstox.com/content/assets/images/cms/2026421/Nifty 50_2026-04-21_06-59-39.png)

The index closed almost flat with an 11-point gain on Monday amid high volatility. On the daily charts, the index made a doji candlestick pattern, indicating indecision on the direction of the market. However, the index managed close above the 50 EMA level, suggesting that the broader sentiment remains bullish. On the daily charts, 24,200 now becomes a crucial support and 24,800 a near-term resistance for the NIFTY50.

NIFTY50-OI analysis

April21.png

Ahead of the weekly expiry, the 24,400 to 24,700 call strikes witnessed strong open intererst concentration, indicating a strong resistance above 24,400-24,500 levels for NIFTY50. On the flipside, 24,000 puts hold the highest open interest, indicating a strong support on the downside.

To access a specially curated smartlist of the most traded and active stocks, as well as the OI gainers and losers, simply log in: https://pro.upstox.com/ ➡️F&O➡️Options smartlist/Futures smartlist In Futures and Options or F&O, long build-up means an increase in Open Interest (OI) along with a price increase, and short build-up means an increase in Open Interest(OI) along with a price decrease.

Source: Upstox and NSE.

Disclaimer: Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop losses. We do not recommend any particular stock, securities or strategies for trading. The securities quoted are exemplary and are not recommended. The stock names mentioned in this article are purely for showing how to do analysis

About The Author

WhatsApp Image 2025-01-20 at 11.25.23.jpeg
Rohan Takalkar is a senior writer at Upstox and a seasoned capital markets analyst with over 10 years of experience. He is passionate about writing on equities, global markets, and the economy.

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