Nifty Outlook - 6 Dec-2022

Nifty Outlook - 6 Dec-2022
Nifty Outlook - 6 Dec-2022

by Ruchit Jain Last Updated: Dec 09, 2022 - 06:33 am 8.4k Views
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Nifty traded in a narrow range on the first day of the week but it recovered from the morning low which was just below 18600 and recovered gradually to end the day on a flat note around 18700. 

 

Nifty Today:

 

Nifty has seen some correction in the last three trading sessions from the high of 18880 to around 18600. This primarily was on expected lines as the momentum readings on Nifty hourly charts were significantly overbought. The overbought readings have cooled off post this correction in Nifty, but the Banking index which is relatively outperforming is still in the overbought zone. However, both the indices have not broken their immediate supports and hence, it seems more of a time-wise correction as of now. Until the indices break their important supports it's better not to preempt any reversal. There are several events this week such as Gujarat Elections and the RBI Monetary Policy which could lead to the next directional move in the indices. Hence, one should keep a close watch on the traders reaction to the events outcome which would dictate the near term trend. The immediate support for Nifty placed around 18550 which is the trendline support, followed by the 20- day EMA support around 18400. If the index manages to hold these supports, then another leg of up move could be seen towards 18900-19000 range.

 

Gujarat Elections and RBI Policy outcome could direct short term moves

 

Nifty 6 Dec 2022

 

 The broader markets continued to outperform as a lot of buying interest is visible in individual stocks. Traders should continue with a stock specific approach where better trading opportunities are seen.

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

18550

43000

Support 2

18400

42800

Resistance 1

18800

43620

Resistance 2

18950

44000

 

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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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