Technical & Data Analysis of Nifty on January 4th 2021 (Support, Resistance, Open Interest)


Nifty OHLC on Jan 4, 2021

Boom, my target of 14080 which was given on 31-Dec-2020 on our Telegram channel was achieved at the opening itself. 🙂

Nifty opened 85.85 points gap up at 14104.35 from the previous day close of 14018.50, continuing its bullishness. 14080 soon acted as support for some time but was broken later.

The opening price itself was an all time high, which was followed by profit booking taking Nifty below 14000 mark. Nifty made a low of 13953.75 at 11:03 AM IST.

However, as mentioned in my previous day’s analysis article, 14000 strike had strong open interest on the put side which acted as good support. Nifty dint sustain below 14000 for not even 3 mins and bulls successfully defended that mark, eventually hitting new life high of 14147.95 during the end of the day. Nifty is closing in on 14200 as mentioned in the previous article. It has closed strongly at 14132.90.

Nifty OHLC on Jan 4, 2021
Nifty OHLC on Jan 4, 2021

What does Nifty’s Chart tell us?

Nifty has almost touched the channel top in the daily time-frame and is also close to the highest open interest strike of 14200. So a break of the channel and 14200 mark may take Nifty towards 14480 level.

Resistance: 14200

Dow Jones Futures price

As I’m writing this article, SGX Nifty is slightly negative while Dow Jones futures is a percent down. If we see a reversal on Nifty from this level, 14000 will be the first immediate support followed by 13820-13780 zone.

Supports: S1: 14000, S2: 13820-13780 zone

Here is the chart for your reference:

Nifty Chart - Technical Analysis on Jan 4, 2021
Nifty Chart – Technical Analysis on Jan 4, 2021

Nifty Open Interest (OI)

Calls: The highest open interest on the call side has today shifted from 14000 to 14200 which will act as immediate resistance for Nifty. The next highest OI on the call side is at 14300 followed by 14100. OI on 14000 strike reduced significantly. The call side data is not favoring bulls.

Puts: The highest open interest on the put side remains at 14000 strike which will continue to act as an immediate support. The next highest OI on puts is at 13900 followed by 13800 strike. This data is also not in favor of bulls.

So considering both call and put side data and the charts, looks like we will witness a correction. 14200 will be a key level to watch out for on the upside! Nifty has also formed hanging man candlestick pattern today. One would prefer a red candle (negative candle) tough!

Daily RSI is at 75.75 and is nearing the caution mark too! So, be cautious on the upside is what most of the indicators are showing.

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

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