NIFTY AND BANK NIFTY ANALYSIS FOR 17 JAN 2023.

16 Jan 2023 2130 Hrs
1. US and Europe has run up a lot. May be due for a pull back. However for the last few days, we have decoupled from US and Europe.
2. In Asia Japan is very bearish while south korea and hang seng is bullish.
3. SGX Nifty is indicating a flat opening of 14 points at 17958 . hence bank Nifty will be 42200.
4. HDFC Bank lost all its gains of the morning and has made a big bearish candle. ICICI Bank has also made a bearish candle. But both are trading in a range.
5. Both bank nifty and nifty has pulled back from 20 SMA.
6. Nifty has highest Call OI @ 18000 followed by 17900. highest put OI is seen at 17900. But Put unwinding has happened in 17800 and 17900. Indicating bearishness.
7. Bank Nifty has highest Call OI 42500 followed by 43000 and highest put Oi @ 42000
8. India VIX is above 15.
Analysis.
1. NIfty and Bank Nifty is indicating flat opening. Both are near the critical sp area of 17900 and 42000 respectively.
2. HDFC Bank and ICICI Bank are reaching its lower end of the range of 1570 and 850 respectively.
Trade plan.
1. I shall wait for the indices to consolidate and make a move.
2. If Nifty breaks 17850, we can get 17791.
3. Similarly if Bank nifty breaks 42050, we may see 41650 levels.
4. If Bank Nifty moves up to 42500 levels, then again it can be shorted. However there is no long trade in Nifty till it crosses 18100.
5. Similarly if Bank Nifty Moves towards 42400, we can short.