NIFTY for 21st January

NSE:NIFTY   Nifty 50 Index
It was the day of reckoning for Nifty and Banknifty both. Nifty opened at lifetime high (12430) and that became today’s high! It slipped down with great speed. I had been writing that if you see on daily chart , Nifty is now at tops on primary as well as secondary channel and a fall or correction is soon expected. Please check my video posted on youtube under channel name Market Movers India for slightly more analytical content. Today’s provisional figures show that DIIs were Net Sellers by 1420 Crs and FIIs were Net Buyers by a mere 6 Crs . Absolute figures for FIIs were: Buy= 5050 Crs and Sell=5044 Crs . Final FII figures for Friday (17th Jan) show that FIIs sold in Equity (1,424 Crs ) and stock futures (464 Crs ) but bought in Index futures (134 Crs ). So all this shows that Selling is now on the minds of institutions. Option chain shows clearly that 12300 is tough resistance since it has highest Call writing and 2nd highest total OI (very close to highest total OI) on CALL side. For Support, on PUT side, 2nd highest total OI (almost same as highest total OI) as well as highest fresh Put writing is at 12200, so it can be taken as support for tomorrow.
On daily chart , Nifty made a huge bearish red candle. If you put bollinger bands , you will see that Nifty today opened at top band of BB and hence went down massively. But now Nifty is at mid –line which is its 20 SMA which is likely to act as support. So I expect some recovery tomorrow. Also, after such a massive fall, some bounce-back is always seen. That tomorrow, Nifty may give a lower low and lower high but higher close is what we generally get in such cases. Option chain is also suggesting that. For levels, I have marked a selling area on 15 min chart. Take the trade with SL.
All the best, happy trading.

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