Nifty Falls 430.55 from My Resistance…Will The Correction Continue?
Nifty OHLC on 18 Jan 2021
Nifty has continued correcting and slipped to 14222.80 from the day’s high of 14459.15. It opened flattish at 14453.80 and closed negatively at 14281.30.
Nifty had already fallen 430.55 points from my resistance given in my analysis on 13 Jan 2020. Will the correction continues? Read on…
What does Nifty’s EOD Chart tell us?
Nifty has formed a bearish marubozu candlestick pattern on the EOD chart. Though Nifty broke the support level of 14240, it did not sustain and managed to close above it.
If Nifty breaks and sustains below 14240, it may test 14080. On the upside 14440 will act as immediate resistance. The upper trend line will be a strong resistance moving forward.
Nifty Open Interest (OI)
Calls: The highest OI is at 14600 followed by 14500 strike price on the call side. Short Buildup/Put writing at these strike prices is clearly visible!
Resistance Levels: 14440, 14560 (Charts + OI)
Puts: The highest OI on the put side is at 14000. It will act as a strong support both technically and psychologically. Opposite to calls OI, there is a good short covering seen in puts at 14500 and 14600 strike prices.
Support Levels: 14080, 14000, 13820-13780 (Charts + OI)
Global Markets
Conclusion: After analyzing the charts and data points, I think Nifty may test 14080 and 14000 mark soon.
Happy trading! Hope this helps, and do share if you feel this information is useful! 🙂
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