20 Jan ’24 — Probably the first working Saturday for a Trader
Nifty Analysis - Stance Neutral ➡️
Recap from yesterday: “The last 3 candles almost gave away the clue that bearishness was ending. We would still like to see how Nifty will open tomorrow. Ideally, it should open above 21698 i.e. within the channel to cement the idea that Bears are thrown out of control.”
4mts chart
Open was right at the trendline and it acted as a resistance. Nifty was unable to breach it and it meant we would have either a flat or negative day. A lot of interesting things happened today.
63mts chart
Nifty was unable to get into the ascending channel despite results from RELIANCE and major banks. We suspect some weakness is haunting N50. It could completely be news/event-driven or related to the build-up for the budget session. The selling figures from the institutions may be because of this. From a technical analysis perspective, Nifty looks range bound between 21913 and 21491. Falling below 21491 could auto-trigger further shorts and it could even be an avalanche. Our stance remains neutral for Tuesday, also note that Monday will be a holiday for the consecration of Ram Mandir in Ayodhya.
Recap from yesterday: “The last 3 candles almost gave away the clue that bearishness was ending. We would still like to see how Nifty will open tomorrow. Ideally, it should open above 21698 i.e. within the channel to cement the idea that Bears are thrown out of control.”
4mts chart
Open was right at the trendline and it acted as a resistance. Nifty was unable to breach it and it meant we would have either a flat or negative day. A lot of interesting things happened today.
- NiftyIT moved down and ended with -371pts ~ 1.00%. Most of them would not have noticed IT falling.
- The banks outperformed today, Kotak +2.41%, AUBANK +2.32%, CANBK +2.22%, PNB +2.74% & ICICI +0.95%. If not for these, Nifty would have had a serious fall today
- Nifty’s low today was lower than yesterday’s low and it has closed the gap from 18th Jan.
- The OTMs of both Nifty and BankNifty were trading in green and sometimes had unusual spikes often seen during low liquidity. Despite the quick announcement to have a working day today - the actual traded volumes or contracts were not that bad either.
- Initially, we thought DII and FII would not participate, but they ended up selling 719 & 545 crores today
63mts chart
Nifty was unable to get into the ascending channel despite results from RELIANCE and major banks. We suspect some weakness is haunting N50. It could completely be news/event-driven or related to the build-up for the budget session. The selling figures from the institutions may be because of this. From a technical analysis perspective, Nifty looks range bound between 21913 and 21491. Falling below 21491 could auto-trigger further shorts and it could even be an avalanche. Our stance remains neutral for Tuesday, also note that Monday will be a holiday for the consecration of Ram Mandir in Ayodhya.
