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Daily Market Analysis 20 Jan 2023 Friday

Market Structure : Sideways as per today’s closing

Nifty Analysis :

1. Nifty traded in yesterday’s range.
2. Nifty should cross the upper trendline for any further upmove.
3. Today it is an inside candle, so tomorrow which ever side Nifty breaks can see further move in that direction.
4. There is a trendline connecting today’s high and yesterday’s high. If this breaks on upside also can take a long trade. See 15 Minutes Chart below.

Nifty Monthly Options Data :

1. Option Sellers unwinded heavy quantities of 17900 call and put in intraday.
2. Added short straddles at 18100 in Intraday
3. In Positional Data, option sellers are maintaining 18100 short straddles.
4. 18000 Put has Highest Open Interest.
5. 18500 Call has Highest Open Interest.

Bank Nifty Analysis :

1. Bank Nifty is still trading in Previous Week’s range
2. After the upmove, Bank Nifty consolidated for two days.
3. Making it a Bullish Wedge Pattern or it can be called as Pole and Flag pattern as well.
4. If this pole and Flag pattern breaks on the upside, target should be same as previous move from the breakout point. See 15 Min Chart.
5. Previous up move is from 41900 to 42500 (approximately), so the move that can be expected after breakout is around 500 to 600 points.

Bank Nifty Monthly Options Data Analysis :

1. In Intraday, Option Sellers added calls at 42500 and 43000
2. 42000 Put has Highest OI
3. 42500 Call has Highest OI

Final Thoughts :

1. Nifty and Bank Nifty are consolidating at the breakout point, which is a good thing for trustworthy breakout on higher side.
2. If Nifty breaks and closes above upper trendline in daily timeframe, then short term trend will change from Bearish to Bullish for Nifty. Tomorrow’s Price action is important.
3. Today’s is a silent expiry, so Non directional Option Sellers must have made good profits.
4. I suggested a scalping trade in telegram, which made more than 1:3 profits. See the below pic for reference.

If you are seeing anything else other than what I’m seeing from this data, post your view below in the comments section.

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Disclaimer : I’m not a SEBI registered analyst, these are my views only.