Nifty Futures last Friday had a strong come back starting with a strong short covering with a firecracker effect resulting in weaker hand short sellers forcefully exiting their short positions(Stop Hunting). A strong Open Drive in Nifty on the last Friday session resulted in a strong PPOC support zone around 21700 levels. Possibly 21700 could be a very strong support zone for this month Jan 2024.
Nifty created a series of supports Spike Base (21650 levels), Strong Support Zone (21700), and Single Print Zone (21790 – 21840) levels.
Nifty daily sentimental indicator turned positive and maintained positive for the last 2 trading sessions which is more important for the earning season to bring more positive returns in the very short term.
Based on the current emotional sentiment and the establishment of a Robust Support Zone in Market Profile Charts, it is predicted that in January 2024, there is an increased likelihood of the Nifty index attaining the level of 22500.