Nifty futures on Wednesday (10th January 2024) recovered the initial losses and breached the intraday high to close around day’s high at 21709.1 with a gain of 0.43%.The major gainers for the day were Cipla(3.09%), Adani Ent(2.77%) and Reliance(2.7%) and the major losers were ONGC(-2.1%) and Divislab(-2.06%).For the day, advance to declines in Nifty 50 stood at 26:24.
On Wednesday the volumes and cumulative open interest(COI) were around the average levels. The volume stood at 6.99 million and the COI stood at 12.94 million. The cumulative delta for the day stood at 305.85K, though it is positive but it was around the average level.
The index futures experienced buying as it touched the support zone of 21520-480. The upside seems limited “as of now” till the resistance of 21800-820 but any breach of these levels with above-average volumes may push the index futures towards a further upside level of 22010-22020.
Traders may experience two scenarios in the next few forthcoming sessions
Scenario 1: Nifty futures may move towards the initial resistance of 21800-820 and become stagnant at those levels or experience some selling pressure.
Scenario 2: Nifty futures may breach the initial resistance of 21800-820 and close above the level and may move toward the next resistance of 22010-22020 in the forthcoming sessions.
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