The Nifty50 started off in the negative zone at the beginning of the week following global peers. However, strong recovery in the latter half helped Nifty close in positive after two sessions of losing streak.
On the daily chart, a piercing candlestick pattern has formed, which suggests a bullish reversal of the short trend. A long lower wick in the latest candle indicates strong demand around 10,500.
On the other hand, even after a strong recovery, the strength indicator RSI (14) remained in the bearish crossover which means the momentum is still bearish.
On the options front, maximum open interest position is visible in 11,000 CE (45.13Lakh shares) and 10,000 PE (53.31Lakh shares); whereas, significant writing at 10,500 PE (7.25Lakh shares) and at 10,600 PE (7.15Lakh shares) pushed the index upward for the day.
Going forward, 10,600 and 10,500 would act as crucial support for the falling Nifty. On the higher end, immediate resistance is visible at 10,770-10,800 where 200DMA is lying. Sustained trades above 10,800 may induce further strong rally in the market.
Source: https://www.moneycontrol.com/news/business/markets/decoding-fo-data-strong-rally-likely-in-january-series-as-long-as-nifty-trades-above-10800-3332441.htmlIf you need more information about the Stock Market:
Visit: http://www.tradeindiaresearch.com
Call On TOLL FREE Number: 9009010900
Whatsapp User Join Our Group: 9300421111
No comments:
Post a Comment