Nifty Outlook - 16 Dec-2022

Nifty Outlook - 16 Dec-2022
Nifty Outlook - 16 Dec-2022

by Ruchit Jain Last Updated: Dec 16, 2022 - 11:03 am 7.6k Views
Listen icon

The global markets did not react much to the Fed event and hence our markets started the day on a negative note. The indices corrected sharply in the later part of the day and ended around 18400 with a loss of almost 250 points.

 

Nifty Today:

 

Our markets had recently seen some consolidation from the start of the December month. Post the 2000 points upmove, Nifty entered a corrective phase, but it managed to form a support around the 23.6 percent retracement of the rally. However, the banking index kept outperforming and stretched higher due to which the momentum readings on the daily charts entered the overbought zone. Such overbought set ups usually lead to a corrective phase and since the major events were behind now, traders chose to unwind long positions which led to the start of a corrective phase in Bank Nifty as well. Now on the daily charts, the RSI oscillator for both Nifty as well as Bank Nifty have given a negative crossover indicating a corrective phase. Hence, one should not be in a hurry to do bottom fishing as if this correction turns out to be a price wise correction, then we could see some decent downmoves in the near term. For the Nifty index, 18350 would be the immediate support to watch as it is the swing low and the retracement support. If this is breached, then Nifty could correct towards 18150-18100 in the short term. On the flipside, 18600-18700 would not be seen as the important resistance zone.

 

Market momentum turns negative on the weekly expiry day

 

Nifty Outlook 16th Dec 2022

 

The Bank Nifty index which was the leader in the recent upmove too has overbought setups on the daily chart. The readings have now given a negative crossover and hence we could see further correction. The immediate support levels to watch out for in the Bank Nifty index would be 43140 first (20 DEMA) followed by 42570 (retracement support).

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

18345

43150

Support 2

18220

42940

Resistance 1

18600

43750

Resistance 2

18700

43850

 

How do you rate this blog?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

oda_gif_reasons_colorful

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.
Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Swing Trading Stocks: Week of 01 April 2024

Swing Trading Stocks for the Week

Weekly Market Outlook for 1st April to 5th April

The week gone by was a truncated week of three trading sessions, but it was not short of any action as the index witnessed a smart recovery in three days. Nifty almost tested the previous all-time high above 22500 on the expiry day and ended just above 22300 with weekly gains of a percent.

Stock in Action – Bajaj Finance

Bajaj Finance Movement of Day