NIFTY for10th January

NSE:NIFTY   Nifty 50 Index
As geo-political tensions eased yesterday due to deliberate wrong bombing at US airbases in Iraq, by Iran and, Trump and Iran both toning down their belligerent stance, oil dropped, dollar (as valued against Rupee) dropped and markets jumped across globe. So it was clear that we will open gap-up today last night itself. But from here on where will Nifty go, is the main question. To break earlier lifetime high of 12293.90, it will require strong positive trigger which doesn’t seem to be around before budget. Also, all bad news is already factored in so there isn’t much downside too. I have suggested two option trading strategies in my video. Please check my video posted on youtube under channel name Market Movers India for slightly more analytical content. Today, despite such a jump, provisional data suggests that FIIs were net sellers (431 Crs) and DIIs were Net buyers (419 Crs). So FIIs and DIIs did some profit booking but buying in index heavy stocks probably, led to massive gap-up and then rise thereafter. Option chain (expiring 16th January) shows, on PUT side, highest total OI and highest fresh Put writing at 12100, so we can assume it as dependable support for tomorrow. On CALL side, highest total OI is at 12200 but good Call writing is absent across all strikes which means practically there is no clear resistance as per OC data. On daily chart, Nifty made a strong but small green candle with higher high, higher low whose low coincided with 20 DEMA. Clear cut trading levels are absent for tomorrow so if at all one has to trade in Nifty, it will be on live charts.
All the best. Happy trading.

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