Nifty on 2024 Jan 20
1) On 2023 Dec 4, Nifty had a gap up opening.
2) This gap is 216 points between low and previous day’s high (20507.75-20291.55).
3) And it is 334 points between open and previous day’s close levels. (20601.95-20808.90).
4) Thereafter till 2024 January 16th, Nifty was travelling in an upward channel.
5) On 17th January this channel has been broken, and index closed below the channel.
6) On that day Nifty had a huge gap down opening. Even it tried to recover more than 50% of the gap, but failed to gain, and eventually closed 75 points below the opening level. And it is 460 points below the closing level of previous day.
7) On that day Nifty opened near the lower line of the channel, and closed below the line.
8) On the next day, Jan 18th, Nifty had another gap down opening. After a volatile intraday movement it had a positive closing, recovering 48 points from the opening level.
9) On 19th Jan, Nifty had a gap up opening and a less volatile intra-day movement, and closed with a 7 points gain from the opening level, creating a small a doji candle, showing indecisiveness among market participants.
10) On 19th Jan, index gained 50.45 pints above the closing level of 17th January.
11) Being at 21622.40, it is taking support at 147 square level. (ie. 147*147 = 21609)
# If nifty can gain about 100 points more, it can close in the upward channel again, If so, we can expect the continuation of the rally.
# If Nifty closes below 21460 level it may touch the 21325 level. If it goes further low it may fall to 21000 level.
Disclaimer: This is for educational purpose, not a trade recommendation, I am not SEBI registered adviser.
