NIFTY for 24th January

NSE:NIFTY   Nifty 50 Index
Nifty today broke three day fall and made a small green candle with lower high but higher low and higher close with 73 point gain. Both the levels –Resistance, R1 and Selling Area were respected today by Nifty . Nifty gave its first reversal from R1, came down and gave good gains to people whoever took that short trade. I took the long trade after that fall which was stopped at Selling area since I believed that Nifty and Banknifty will stage a comeback today no matter what.
Please check my video posted on youtube under channel name Market Movers India for slightly more analytical content. So now what about tomorrow? Let’s investigate. FIIs were net buyers today (1352 Crs ) and DIIs were net Sellers (984 Crs ). Both the figures are big! FIIs final figures for yesterday reveal that they were net sellers in Index futures (927 Crs ) and stock futures (1738 Crs ) but net buyers in Equity (62 Crs ). All these figures show that institutions are also turning to selling though its’ not a sell- all situation. Option chain (Expiry 30th Jan) show that 12100 can be a reliable support since it has highest fresh Put writing and 3rd highest total OI on PUT side. On CALL side, there is actually less clarity since highest total OI is at 12500 which is very far from CMP and 2nd highest total OI is at 12300 but there is no appreciable Call writing on any strike. So there is no clear cut resistance. On daily chart , Nifty today reversed from 50 DEMA which is also at lower limit of secondary channel. But just because Nifty executed a green candle today doesn’t mean that it is out of red. I am still looking for selling since it is not yet at lower limit of Bollinger band (12002). So on 15 min chart, I have marked a resistance and a selling area which I think will react as they reacted today. So take these short trades with SLs .
All the best. Happy trading.