Nifty 25Jan’21: Not Good News

A definite sign of selling as Nifty fails to hold on to a strong opening on the last trading session. Thanks to this recent sell-off, the index has now clearly broken below two rising channels and moved into a short-term down trend. (14,100-14,250) is a wide cluster of price which ideally should offer some support to the index now. However it’s 13,900 that seems to be a much more promising level as there lies a high-volume price cluster. Strategically, we should wait for some definite sign of selling exhaustion and then look to initiate long trades. On the upside, immediate resistance for the index is now at (14,400-14,500).

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Trade Well. Trade Wise.