Nifty index opened negative and cascaded throughout the session and stooped down to 25,860 levels. It broke all its immediate support levels and gave in to selling pressure to close near its lower band with losses of around 260 points. It formed a bearish candle on the daily frame and is forming lower highs – lower lows from the last three sessions. Now till it holds below 25,950 zones, weakness could be seen towards 25,700 then 25,600 zones while resistances have shifted lower to 26,000 then 26,150 zones.
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On option front, Maximum Call OI is at 26,100 then 26,200 strike while Maximum Put OI is at 25,700 then 25,500 strike. Call writing is seen at 26,000 then 26,100 strike while Put writing is seen at 25,900 then 25,700 strike. Option data suggests a broader trading range in between 25,400 to 26,400 zones while an immediate range between 25,700 to 26,100 levels.
S&P BSE Sensex index opened on a negative note and bears took charge from the initial hour as the index dragged sharply lower towards 84,100 zone. Sustained selling pressure persisted throughout the session with every minor bounce being sold into keeping bulls firmly on the back foot. Bears held a tight grip through the day resulting in a weak close below the 50 DEMA, further dampening near term sentiment. On the daily chart it formed a bearish candle and has been creating lower lows from the last four sessions, indicating that weakness may continue unless the index manages to reclaim and sustain above key hurdle levels. Now till it holds below 84,400 zones weakness could be seen towards 83,900 then 83,600 zones while hurdles have shifted lower to 84,500 then 85,700 zones.
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Bank Nifty index opened on a negative note but quick recovery was seen from lower levels towards 60,100 zones in the initial hour of the session. However it again failed to hold at higher zones and drifted lower towards 59,550 zones. It formed a bearish candle on the daily scale and is forming lower highs – lower lows from the last few sessions as selling pressure is seen at higher zones. Now till it holds below 59,750 zones some weakness could be seen towards 59,500 then 59,250 zones while on the upside hurdle is seen at 60,000 then 60,250 levels.
Nifty future closed negative with losses of 1.03% at 25,965 levels. Positive setup seen in IDFC First Bank, ICICI Bank, SBI Life, Solar Industries and BEL while weakness in Kaynes, RVNL, ONGC, Coforge, CDSL, Reliance, Biocon, Hindpetro, Ioc , Dr Reddy, Jubiliant foodworks, Trent, CG Power, TMPV and Bharti Airtel.
NATIONALUM
TECHNICAL CALL OF THE DAY:
Sell NATIONALUM 27th Jan FUT CMP 334 SL 342 TGT 315
Stock has formed an “Evening star” candlestick pattern suggesting a bearish reversal. The RSI indicator has given a bearish crossover to confirm the reversal.
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