NIFTY ON 02-01-2023
Defying weak Global cues Index opened gap up and failed to sustain 18200 and fell to retest 18100 during the first hour of trading session. A sharp recovery from the lower levels was observed and Index reclaimed 18200 during intraday.
Several attempts were made by the Bears to bring the Index below but the Bulls took the charge and kept the Index on higher side.
Consequently, Index succeeded to break and sustain 18200 and made a day high of 18215.15.
METAL and BANK took the leadership with gains 2.43% and 0.50% respectively. All the indices closed in Green except PHARMA.
NIFTY closed at 18197.45 with a gain of 0.51% making a Bullish candle on daily chart.
Technical View: Daily Chart
NIFTY has made a Bullish candle which may be taken as an indication of further upside.
NIFTY is moving below EMA 13, 21, 34 and EMA 13< EMA34<EMA21 which is giving mixed indications regarding the current trend and hence it may be interpreted that Index is following the sideways trend.
RSI rose to 47.76 from 44.33 creating a ‘diversion’ as the Index failed to make Higher-High but there is a rise in RSI. This reflects the strength of the Index is on the positive side.
Support and Resistance : Daily Chart
18133-18080 will work as the first support level for NIFTY and below this 18000 will hold strong support for NIFTY.
On the upper side NIFTY will face resistance in the range of 18263-18298. Above this 18360 will hold strong resistance.
View for Traders:
As we had discussed in the previous post that Index has a tendency to move towards EMA 13 and the same has been observed during today’s trading session ( EMA 13 lies at 18206.42).
Until and unless the Index crosses and sustain decisively this level the Index should be considered in Sideways trend only. The further upside is possible if and only if Index succeeds to cross and sustain 18200 decisively.
Further, as per the Options Chain data, the Broader trading range seems to be 17975-18275 for the weekly expiry.
However, for tomorrow the trading range seems to be 18125-18275.
So, there are high chances that there will be a volatile trading session tomorrow and trades will take place at both the end.
Hence, Buy NIFTY in the range of 18115-150 for Target of 18200-250. SL may be put below 18080 on closing basis.
Sellers must take their chances in the range of 18275-300 for target of 18200-18175. SL may be put above 18300 on closing basis.
INTRADAY PICKS
1. SAIL
Buy in the range of 87.50-88
Target 1 91 Target 2 94
SL 86.
2. Redington India
Buy in the range of 185.50-186
Target 193.65
SL : 181
Defying weak Global cues Index opened gap up and failed to sustain 18200 and fell to retest 18100 during the first hour of trading session. A sharp recovery from the lower levels was observed and Index reclaimed 18200 during intraday.
Several attempts were made by the Bears to bring the Index below but the Bulls took the charge and kept the Index on higher side.
Consequently, Index succeeded to break and sustain 18200 and made a day high of 18215.15.
METAL and BANK took the leadership with gains 2.43% and 0.50% respectively. All the indices closed in Green except PHARMA.
NIFTY closed at 18197.45 with a gain of 0.51% making a Bullish candle on daily chart.
Technical View: Daily Chart
NIFTY has made a Bullish candle which may be taken as an indication of further upside.
NIFTY is moving below EMA 13, 21, 34 and EMA 13< EMA34<EMA21 which is giving mixed indications regarding the current trend and hence it may be interpreted that Index is following the sideways trend.
RSI rose to 47.76 from 44.33 creating a ‘diversion’ as the Index failed to make Higher-High but there is a rise in RSI. This reflects the strength of the Index is on the positive side.
Support and Resistance : Daily Chart
18133-18080 will work as the first support level for NIFTY and below this 18000 will hold strong support for NIFTY.
On the upper side NIFTY will face resistance in the range of 18263-18298. Above this 18360 will hold strong resistance.
View for Traders:
As we had discussed in the previous post that Index has a tendency to move towards EMA 13 and the same has been observed during today’s trading session ( EMA 13 lies at 18206.42).
Until and unless the Index crosses and sustain decisively this level the Index should be considered in Sideways trend only. The further upside is possible if and only if Index succeeds to cross and sustain 18200 decisively.
Further, as per the Options Chain data, the Broader trading range seems to be 17975-18275 for the weekly expiry.
However, for tomorrow the trading range seems to be 18125-18275.
So, there are high chances that there will be a volatile trading session tomorrow and trades will take place at both the end.
Hence, Buy NIFTY in the range of 18115-150 for Target of 18200-250. SL may be put below 18080 on closing basis.
Sellers must take their chances in the range of 18275-300 for target of 18200-18175. SL may be put above 18300 on closing basis.
INTRADAY PICKS
1. SAIL
Buy in the range of 87.50-88
Target 1 91 Target 2 94
SL 86.
2. Redington India
Buy in the range of 185.50-186
Target 193.65
SL : 181