Nifty Outlook - 15 Dec-2022

The benchmark index extended the rally consecutively for the third day in a row. Nifty witnessed gap-up opening on Wednesday session amid firm global cues after the US CPI data while, investors are still waiting for the Fed outcome. Nifty50 index gained 0.28% or 52.30 points to close at 18660.30 levels while, Banknifty hit record high as financials continued to outperform on the back of strong credit growth, the price rose to 102.55 points ended at 44049.10 levels. 

Nifty Today:

On the sectoral front, Nifty IT, METAL, REALTY & MEDIA were among the strong indices, while FMCG was the top dragger for the day. Stocks like COLPAL, IBULHSGFIN, HAVELLS, LALPATHLAB were the top OI gainers, while DALBHARAT, TATACOMM, RAMCOCEM & RAIN were the top OI losers for the day. On the derivatives front, the highest Call option OI has been added at 19000 strike price followed by 18700, while on the put side, the highest OI has been noticed at 18000 strike price followed by 18500 and maximum pain is at 18600 marks. 

Technically, the nifty index has reversed from the immediate support of 23.6% Retracement Levels on Monday session and managed to sustain above 21-days SMA. The momentum reading settled at 61.98 levels with a positive crossover that suggests further bullishness for the near term. While Banknifty readings are already in overbought territory and starching the trend further. However, after the gap-up opening on Wednesday, both the indices traded range bound and closed in red. Hence, we can expect further volatility for the coming day ahead of the weekly expiry and the awaited Fed meeting outcome could lead to a directional move. Moreover, the Nifty Midcap 100 has confirmed a bullish breakout and Nifty Metal is on the verge of breakout on the daily chart, so stock specific action could be seen in the market for the coming days.  

The benchmark indices extended the rally on the back of positive global cues

The immediate supports for Nifty are placed around 18530 and 18440 while resistances are seen around 18750 and 18880.

Nifty & Bank Nifty Levels: