Nifty Outlook - 21 Dec-2022

Nifty Outlook - 21 Dec-2022
Nifty Outlook - 21 Dec-2022

Market Outlook
by Ruchit Jain Last Updated: 2022-12-20T17:48:25+05:30

After the recovery seen in Monday’s session, Nifty started Tuesday’s session on a negative note and it corrected to breach the previous day’s low and almost test 18200 mark. However, the index recovered most of intraday losses post noon it ended the day tad below 18400 with a marginal loss.

 

Nifty Today:

 

The pullback move in Monday’s session ended around the trendline which was broken and the follow up move in Tuesday’s session indicated a resumption of the downmove after testing the trendline resistance. However, since the Nifty has already seen a price-wise correction from 18888 to 18200 in last couple of weeks, the momentum readings on the hourly chart entered the oversold territory and intraday charts witnessed some divergences which led to the tail end recovery. The daily chart structure still indicates a corrective phase, but since the lower time frame charts are witnessing recovery from oversold territory, some ups and downs are likely to continue in the near term. Hence, it is better to trade cautiously and trade with a stock specific approach until there is confirmation of the momentum turning bullish again. On the higher side, 18500-18570 would be seen as an immediate resistance zone while 18200 is the immediate support now. Below 18200, 18135 and 18070 would be the levels to watch in the short to medium term.

 

Market recovers in later half due to oversold set ups on hourly charts

 

Nifty Outlook 21st Dec

 

The options segment hints at resistance in the range of 18500-18600 where maximum open interest build up is seen while 18200 put option has decent open interest outstanding which would be the immediate support. 

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

18290

43060

Support 2

18200

42775

Resistance 1

18460

43540

Resistance 2

18530

43720

 

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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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