A Pullback Rally After Closing Above Support In Nifty As Mentioned On Telegram Channel!


Nifty OHLC on 18 Jan 2021

A hint was given on my telegram channel that a small pullback rally is possible after Nifty managed to test my support and close above it.

(MOIL also rocked and gave almost 3% return 🙂 )

Telegram Post
Telegram Post

Nifty opened a 90.35 point gap up at 14371.65 above yesterday’s closing price of 14281.30. It made a low of 14350.85 and continued it’s journey to test my resistance of 14560. It made a high of 14546.05 and closed strongly at 14521.15.

Nifty OHLC on 19 Jan 2021
Nifty OHLC on 19 Jan 2021

What does Nifty’s EOD Chart tell us?

Nifty formed a bullish candlestick on EOD chart and is looking to test the upper trend line. It may test 14640 level if it manages to sustain above the resistance of 14560.

If Nifty breaks 14240-60 zone and sustains, it may test 14140, 14080 and 14000 on the downside.

Nifty EOD Chart on 19 Jan 2021
Nifty EOD Chart on 19 Jan 2021

Nifty Open Interest (OI)

Calls: The highest OI remained at 14600. The next highest open interest is at 15000 followed by 14700 strike price on the call side.

As Nifty opened gap up from the support level and sustained, the shorts on the calls were forced to cover their positions! Hence the short covering rally!

Resistance Levels: 14560, 14640 (Charts + OI)

Puts: The highest OI on the put side is at 14400 strike price which will act as immediate support. The next highest OI is at 14300 followed by 14000 strike.

Support Levels: 14440, 14240-260, 14080, 14000, 13820-13780 (Charts + OI)

Nifty OI as on 19 Jan 2021 for 21 Jan 2021 Expiry
Nifty OI as on 19 Jan 2021 for 21 Jan 2021 Expiry

Global Markets

Dow Futures live on 19 Jan 2021
  • NASDAQ has followed the Asian Markets so far and is trading with almost a percent gains
  • Dow Futures is also trading with a 125 points (0.41%) gains while I’m putting down this analysis
  • SGX Nifty lost 0.63% and is trading negatively
  • European markets have closed slightly negative
  • Joe Biden will take the office tomorrow and the markets may be volatile (including Indian market)
  • Our budget session are also nearing, so be ready!
Global Markets OHLC on 19 Jan 2021
Global Markets OHLC on 19 Jan 2021

Conclusion: In my opinion, this is just a pullback rally and may be short lived. Nifty may resume its correction!

Happy trading! Hope this helps, and do share if you feel this information is useful! 🙂

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