Nifty strategy and setup for Tuesday 28/01/2025 trade
Nifty Continues Its Downtrend: Closes at 22,829.15, Down by 263.05 Points (-1.14%)
The Nifty extended its bearish trend from Friday, opening the week on a weak note. The index opened at 22,940.15, down by 150.05 points, and struggled throughout the day. The day’s high was recorded at 23,007.45, but it failed to sustain these levels.
We had recommended a **short call on Nifty Spot below 23,040 with a target of 22,840, which was successfully achieved as the index slipped further to make a day’s low of 22,786.90. The Nifty closed at 22,829.15, marking a decline of 263.05 points (-1.14%).
Institutional Activity
The institutional flows showed mixed trends:
DII (Domestic Institutional Investors) bought shares worth ₹6,642.15 crore,
FII (Foreign Institutional Investors) sold shares worth ₹5,015.46 crore.
Option Chain Analysis
– On the Call option side, the highest Open Interest was observed at the 23,000 level, signaling strong resistance.
– On the Put option side, the highest Open Interest was seen at 22,800, indicating possible support.
Market Outlook
We believe the market will attempt to find support at 22,750-22,790 levels. However, if the 22,750 level is breached with good volume, the index could slide further towards 22,600.
Day Trade Strategy
Short Position: Traders can consider a stop-loss above 22,810 for intraday trades.
Long Position: If Nifty sustains above 22,800, traders can go long at 22,980 with a target of 23,200 and a stop-loss at 22,920.
*Disclaimer: Investment in the stock market is subject to market risks. Please consult your financial advisor before making any investment decisions.*