End of Day Review & Analysis of Nifty BankNifty for Jan 4, 2024

Nifty opened flat and started selling off towards previous day’s low and didn’t find momentum to bounce back for most of the session to sell off more towards end of the session. Price action was weak and bearish forming a bearish marubozu candle. Nifty Futures Open Interest saw addition with fall in price indicating weakness and addition of shorts positions which might lead to more downside. On Options side saw huge build up in 21600 levels showing immediate Resistance and mild support around 21400-500, major support seen at 21000 levels. Nifty might consolidate or slowly grind towards 21400-300 levels and make base formation. Reliance and IT stocks contributed for the fall today.

BankNifty also opened flat and started selling off as well but found support around 47500 and bounce with some buying at low levels. Price action was buy on dips and formed a hammer candle pattern which counts as slight bullish. BankNifty futures Open Interest on the other hand decreases with fall in price suggesting slightly bullish as shorts positions are being closed and downtrend weakening. Options side saw huge addition of Open interest in 47500-700 levels suggesting good support and slight Resistance at 48000 and major resistance at 49000 levels. BankNifty might show up move if slight strength is seen in markets. Bank stocks were strong today.

US markets were flat to weak last trading session and futures were trading slight weak showing more weakness in today’s session.