Nifty 07Jan'21: Chance for Bears Now

7 Jan 2021

Underlying momentum of the index slows down with a complete flat close from the benchmark Nifty50 in today’s session. A good-enough “Doji” on the daily chart clearly suggests quite a bit of tug of war between bulls and bears at the current juncture. Now on the 75min chart, prices have so far behaved quite as per our expectations. A short-term bounce back has resulted in a retest of channel’s lower border which now acts as resistance. If the index fails to find itself back within the channel, then expect some correction for which a major trigger will be a breach of 14,100. Expect some volatility and so I’d suggest to trade cautiously tomorrow.

Trade Well. Trade Wise.