NIFTY PREDICTION & NIFTY OPTION CALL PUT TIPS FOR 19 JAN 2022

On a Tuesday trading session, the benchmark index witnessed a profit booking after a continued upside move and Nifty has retreated almost 1% from the day high to close at 18113 while Banknifty has settled at 38210 levels. Markets shed nearly a percent in a volatile trading session, in continuation to the prevailing consolidation phase. The market oscillated in a range before finally settling in the red. Mixed global cues were weighing on the sentiment which triggered profit taking across the board. Among the sectors, most indices ended lower and the broader indices also closed in the red. Keeping in mind the scenario, it’s prudent to maintain a few shorts also. The focus should be on earnings and global markets for cues. Markets took a break from the recent upsurge as bears took control after weak Asian and European cues prompted investors to book profit. As a result, the Nifty has formed a long bearish candle which suggests further weakness from the current levels. It has also formed a lower top formation, indicating continuation of weakness in the near future.  

We may see a further decline in the Nifty and the 18050-17950 zone would act as a support. Volatility usually remains high during the corrective phase and earnings season is further adding to the choppiness. We are of the view that the intraday formation is still weak and now 18350-18400 would act as an important hurdle for the day traders and below the same the correction wave could continue up to 18050-17950 levels. Contra traders can take long bets near 18020 with a strict stop loss at 17980.At present, the index has support at 18050 levels while resistance comes at 18400 levels, crossing above the same can show 18500-18600 levels. On the other hand, Bank Nifty has support at 37800 levels while resistance at 38600 levels. On the options front, the maximum call OI is at 18300 strike price while maximum put option OI is at 17000 strike price followed by 18000. However, overall market structure is bullish with positive bias, so every dip would be a buying opportunity for the long term players. Technically, the Nifty index has formed a bearish engulfing pattern, which indicates some correction in the index. A momentum indicator RSI & Stochastic has reversed from overbought territory, which suggests bearish sentiments for the Wednesday Thursday.

Resistance: 18300, 18375, 18450

Support: 18200, 18150, 18100