NIFTY

Highlights

Open Interest in January decreased with rise and indecisive candle which indicates unwinding of positions. Doji has been witnessed in north, so we can expect nifty will move south i.e. down side.

Trend

Down trend’s momentum still continuing unless the price closes above 5257. Yesterday piercing bottom forced the nifty to test 75% retracement level of fall from 5303 to 5176.

NIFTY JANUARY

Yesterday’s indicated calls not activated.
If the high of 5275 is not crossed tomorrow then it acts as a lower top resistance for nifty.

Doji has been witnessed, as per Doji strategy traders can sell on fall below 5244 with the stop loss of 5275 if the price moves above 5275 then traders can buy with the stop loss of 5244.

Unwinding of positions look shorts have been covered but the volume gives the clue, still the shorts are in force. Expect Nifty to test the low of 5176 in a due course of time.