Nifty Outlook - 14 Dec-2022

Nifty Outlook - 14 Dec-2022
Nifty Outlook - 14 Dec-2022

Market Outlook
by Ruchit Jain Last Updated: 2022-12-14T12:24:26+05:30

Nifty witnessed some recovery in Monday’s session post the gap down opening and a follow up buying interest was seen in Tuesday’s session as well. The index ended the day above 18600 with gains of over half a percent.

 

Nifty Today:

 

The correction in the last one week has retraced the recent uptrend by 23.6 percent. Around this Fibonacci retracement support, the index managed to halt the correction and has pulled back higher in Tuesday’s session. The momentum readings which were highly overbought in both Nifty as well as Bank nifty has cooled off in Nifty, but still remains at elevated levels in Bank Nifty as the banking space has not even witnessed minor price corrections and has infact continued its outperformance. Hence, although the trend remains positive, the risk reward ratio for fresh buying in the banking space is not very favorable. For now, it seems a time-wise corrective phase in the Nifty index with possibility of another leg of upmove in process till 18350 is intact. But it needs to be seen whether any heavyweights other than banking picks up momentum to lift the benchmark higher. The global markets reaction to the FED policy outcome will have an impact on our markets and thus, the event could then lead to a directional move for the near term. For the time being, it is better to focus on a stock specific approach and look for opportunities in pockets with good price volume action.

 

Market recovers from important support, FED policy outcome awaited

 

Nifty Outlook 14th Dec

 

The immediate supports for Nifty are placed around 18440 and 18350 while resistances are seen around 18700 and 18825.

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

18525

43800

Support 2

18440

43680

Resistance 1

18650

44030

Resistance 2

18700

44120

 

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About the Author

Ruchit Jain is Lead Research Analyst at 5paisa. He has a vast experience of 14 years in this field and is proficient in Technical and Derivatives Research. He has completed his CMT (U.S.A.) and has done Masters in the field of Finance at Mumbai University.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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