Nifty Outlook Report - 13th April, 2022
Ruchit Jain
10th December 2022
The correction in the global markets led to a negative opening for our markets and post opening, Nifty witnessed some selling pressure and it breached the 17500 mark. The index registered a low tad below 17500, but it recovered some of the losses and ended around 17530 with a loss of about eight-tenths of a percent.
In last few sessions, Nifty has corrected from its swing highs of over 18100 and has now approached its ’20 DEMA’ support. This short term moving average support which is placed around 17450 acted as a support today and we witnessed some recovery towards the end. Since we are heading towards a long weekend, traders would prefer to stay light on positions and hence, we are unlikely to witness any significant move in spite of it being a Weekly Options expiry day.
Decent open-interest build up seen in 17700 – 17800 call options which would be resistance while 17450-17500 would be seen as the support zone. Traders can look for some buying opportunities near the support zone as the risk rewards seems favorable for short term trading. We witnessed a lot of stock sector specific activity today wherein the IT space continued its corrective phase while a relative outperformance was seen in the banking and financial stocks. The metal stock corrected from the highs today on back of some correction in the base metals and certain stocks in this space witnessed short formations as well.
In the near term, while the index could see some consolidation, sector rotation could be seen and hence, traders should look out for such sector/stocks which are showing relative outperformance. We expect some buying interest to continue in sectors such as banking, cement etc.
Nifty Levels
|
Support 1 |
17450 |
|
Support 2 |
17370 |
|
Resistance 1 |
17600 |
|
Resistance 2 |
17675 |
Bank Nifty Levels
|
Support 1 |
37500 |
|
Support 2 |
37370 |
|
Resistance 1 |
37830 |
|
Resistance 2 |
38000 |
Tanushree Jaiswal