NIFTY for 8th January

NSE:NIFTY   Nifty 50 Index
Last night when US markets closed in positive by 68 Points, this morning Asian markets took cue and opened in positive too. SGX Nifty indicated an impressive gap up by around 68 points. So we opened with a gap and went up for around half an hour, clocked a high of 12152, before starting to come down just above12000 levels. So 12000 level still held good today. Oil recovered and now is trading at USD 68.26/bbl. Rupee opened strong but later did fall and closed at 71.82/USD. The tensions are not over yet and hence downside is still open. Please check my video posted on youtube under channel name Market Movers India for slightly more analytical content. The FIIs were net sellers today (682 Crs) and DIIs were net buyers (by 311 Crs) but the amounts are not much which shows indecision or nervousness. The final figures for Monday show that FIIs were net sellers in equity (14 Crs), in index futures (976 Crs) and in stock futures (476 Crs) which was understandable.
Option chain for Nifty reveals that on PUT side highest total OI is at 12000 strike and highest fresh Put writing is at 12050 strike. On 12000, fresh Put writing is around 6.20 lakhs (which is 2nd highest). So we can take 12000 as dependable support for tomorrow. On CALL side, highest total OI and highest fresh Call writing both are seen at 12000 strike so ideally that should be taken as resistance. Actually on all strikes from 12100 till 12300, there is impressive total OI but not impressive Call writing. Since 12200 is actually very far from CMP so we seek help from charts.
On daily chart, Nifty made a base-like candle with long upper and lower wicks and with lower high but higher low than yesterday. Yesterday’s low will be a crucial support and if that breaks, we can go into tailspin. On the other hand, today’s high of 12152 will serve as resistance. On 15 min chart, I have marked a level for selling if Nifty reaches there.
All the best. Happy trading.

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