Nifty Outlook - 27 Dec-2022

Nifty Outlook - 27 Dec-2022
Nifty Outlook - 27 Dec-2022

Market Outlook
by Sachin Gupta Last Updated: 2022-12-27T11:11:31+05:30

The benchmark index continued the upside after a gap-up opening on Monday's session on the account of positive global cues and SGX. The Nifty index surged 1.2% to close above the 18000 mark while the Banknifty inched up by 2.3% to settle at 42630.15 levels. All the sectoral indices closed in green except Healthcare. Nifty PSUBANK were the top gainers with 7% gains, followed by REALTY, METAL & ENERGY contributing more than 2% for the day.

 

Nifty Today:

 

The Nifty has taken good support at the 100-days EMA and 50% Retracement Levels of its prior rally, but failed to sustain above the prior day candle and Rising Trendline. However, the momentum reading reversed from the oversold zone but still below the average line that shows negative bias. After a sharp fall in the last three trading sessions, the banknifty revived from the immediate support of the Rising Trendline and filled the Friday’s session gap. The price has also moved above 50-days EMA on the daily chart.

Although, just based on the one-day move, we can’t expect a reversal in both the indices because the momentum reading and other indicators still remain bearish, so traders are advised to wait & watch strategy for the coming day. If the Nifty sustains above the 18100 mark and surpasses the immediate hurdle of 18200, then we can expect a further reversal. Else, it could be a dead cat bounce and again we will see further selling pressure. 

 

                          The benchmark index jumped over 200 points & reclaimed 18000 mark. 

 

Nifty Outlook 27th Dec 2022

 

On the downside, the nifty has support at 17800/17650 levels while it has resistance at 18200 & 18400 levels. 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17900

42200

Support 2

17800

41870

Resistance 1

18120

43100

Resistance 2

18200

43450

 

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About the Author

Mr. Sachin Gupta is a Senior Research Analyst at 5paisa, based in Mumbai. He has over 10 years of experience in Equity, Commodity research and strategies. 

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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