Market Outlook for 16th December 2024
Nifty Today Outlook Report - 07 July 2022
Last Updated: 9th December 2022 - 01:39 am
Post the sell-off from the 16000 zone in the later half on Tuesday, Nifty started the day on a flat note. The index defended 16800 level in the initial dip and then it rallied higher with a ‘Higher Top Higher Bottom’ formation. The index reclaimed 16000 mark and ended tad below that with gains of over a percent.
Nifty Today:
After some intraday volatility on Tuesday, the index resumed the positive momentum and the broader markets witnessed decent buying interest leading to its outperformance. The momentum readings on the daily as well as the hourly charts are in buy mode indicating further room on the upside. The Midcap 100 index has also given a breakout above its ’20 DEMA’ and a follow up move in the same indicates a buying interest in the broader markets.
In options segment, the call writer ran to cover their positions as the index rallied while open interest addition was seen in 16900 and 16800 put options which indicates that near term support for Nifty is now at 16800. Looking at the above data, it seems that index index could try to complete its 61.6 percent retracement of the previous down move which is placed around 16178. Hence, traders are advised to trade with a positive bias and look for stock specific buying opportunities in the broader markets.
Nifty resumes momentum inspite of intraday volatility
Recently, we have seen a high inverse correlation in Dollar Index and Nifty. However, the recent upmove in the Dollar Index has not seen any correction or new lows in the Nifty and this should be seen as a positive divergence. This short term divergence could result in more pullback move in the index as traders with short positions will look to cover up.
Nifty Levels |
Bank Nifty Levels |
|
Support 1 |
15900 |
34000 |
Support 2 |
15800 |
33850 |
Resistance 1 |
16070 |
34700 |
Resistance 2 |
16180 |
34850 |
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