What Next for Nifty? Here’s My Analysis! (14480 Target Achieved)


Nifty OHLC on 11 Jan 2021

Nifty after the breakout, has reached the target of 14480 given in my previous article. It opened at 14474.05 with a gap of 127 points above Friday i.e. 8th Jan 2021 close of 14347.25.

With such a gap up opening, at record levels and that too at a resistance, profit booking was eminent, which took Nifty to 14383.10. Once that settled, Nifty had once again scaled up to yet another all time high of 14498.20 almost kissing the 14500 mark.

Nifty OHLC on 11 Jan 2021
Nifty OHLC on 11 Jan 2021

In the shorter time frame (3 mins), Nifty has clearly formed an upward channel during the day. Here, take a look:

Nifty 3mins chart - 11 Jan 2021
Nifty 3mins chart – 11 Jan 2021

What does Nifty’s EOD Chart tell us?

As mentioned in my analysis on Jan 5, 2021, once Nifty has given a breakout it tested 14500 and RSI is at 80. Nifty may now test our next targets of 14560 and 14640 which is the top of the trend line.

Nifty has also given a strong closing above the channel, and the trend line will now act as support going forward. Take a look at the chart below to get a clear picture of what I’m trying to explain:

Nifty EOD Chart on 11 Jan 2021
Nifty EOD Chart on 11 Jan 2021

Nifty Open Interest (OI)

Calls: The highest open interest on the call side is at 14800 which is 300 points away from the Nifty spot price. The next highest OI is at 14500 strike, however there is not much change in the OI at this strike price!

Resistance Levels: 14500, 14560, 14640

Puts: The highest OI on the put side remains at 14200 strike for third day, which clearly states that it will act as the support for this week’s expiry. The next highest OI has also remained at 14000.

This indicates that there is significant put writing at 14000 strike, which in my opinion won’t be broken this week. The OI is spread across strikes and doesn’t give a clear picture on the upside.

Support Levels: 14240-260, 14000, 13820-13780

Nifty OI as on 11 Jan 2021 for 14 Jan 2021 Expiry

Daily RSI is now very close to 80 at 79.70!

Global Markets

  • The European markets have closed negatively today
  • NASDAQ is following the EU markets and is trading negatively at this point
  • Dow Jones futures and SGX Nifty are also trading flat to slightly negative

Conclusion: All the data put together, one thing is looking certain that Nifty may not fall below 14200 or at max take support at 14000 for this week.

Taking global markets into consideration, looks like 14500 mark will be crucial for Nifty tomorrow. I’d look for the upside targets of 14560 and 14640 once Nifty sustains above 14500.

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

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