NIFTY AND BANK NIFTY ANALYSIS FOR 09 JAN 2023

08 JAN 2023. 1800 Hrs

1. US Markets have turned bullish for short term.
2. Europe is very bullish. Asia has turned bullish for short term.
3. India VIX is above 15 indicating increased volatility.
4. HDFC Bank has made a hammer on daily time frame . If it crosses 1602, then again it will be back in the range of 1600 - 1640. So we may see some bullishness.
5. ICICI bank is still looking bearish even though it has made a hammer in daily time frame but not a convincing one. Axis bank has pulled back but bullish. SBIN is looking weak.
6. Reliance has closed above 2532. So looking bullish as it has made a double bottom. Also Reliance has been trading in the range of 2450 - 2800 range. So it is at the lower end of the range.
7. SGX Nifty is indicating 150 points gap up @ 18109. So it will be back above 18100 @ opening.
8. This amounts to 42650 levels for Bank Nifty which is the high of previous day and resistance zone.
Same is true for Nifty Also.
Analysis.
1. If Nifty sustain above 18100 levels, we may see some consolidation. I do not expect any up move after a 150 points gap up.
2. Similar is the case with the Bank nifty if it gap open 450 points.
3. Highest call OI for Nifty is at 18000. There are no considerable put OI build up.
4. Similarly for bank nifty highest Call OI is at 43000, followed by 42500. Highest put OI is at 42000.
5. As per OI both nifty and Bank nifty look bearish.
6. If Nifty consolidate at 18100 levels, then we can take bullish bet tomorrow. if Nifty makes a big red candle immediately after open up, then i will sell.
7. Similarly, if HDFC Bank sustain above 1600 , then Bank nifty may consolidate at 42600 levels.
8. If HDFC & ICICI show weakness in opening, then i will sell Bank Nifty with 42700 as stop loss.
9. Option traders can similarly buy 42500 puts and 18000 puts.
THE VIEWS ARE PERSONAL AND FOR EDUCATION PURPOSES ONLY. PLEASE CONSULT YOUR FINANCIAL ADVISOR FOR ANY INVESTMENT OR TRADING.