Nifty Outlook - 20 Dec-2022

Ruchit Jain Ruchit Jain

Last Updated: 21st December 2022 - 10:56 am

Listen icon

Post the weak closing during last week, Nifty started the new weak on a flat note but witnessed a pullback move during the day. The index crept higher with support of some or other heavyweights and ended the day above 18400 with gains of over eight-tenths of a percent.

 

Nifty Today:

 

During last week, Nifty corrected and breached its important ’20 DEMA’ support as the momentum weakened due to profit booking from stronger hands. However, the correction from swing high of 18888 to 18255 in Friday’s session led to oversold setups on the Nifty hourly charts. The readings on the hourly charts gave a positive crossover in the morning which led to the pullback move during the day. Now, the set ups on the daily charts still are not much positive and hence, we continue with our view that the markets have entered a corrective phase after posting highs on 1st December. But when some sector rotation takes place, there is a possibility of corrective phase turning to be a time-wise correction where rallies towards the resistances are sold into while declines towards supports witness buying interest. Hence, we do not expect a run-up rally in the short term on the indices and hence, upmove towards resistances should be used to lighten up trading longs. The immediate resistances for Nifty are seen in the range of 18470-18500 followed by 18600 levels. On the flipside, 18250 and 18134 are the near term supports for the index.   

 

Nifty shows a pullback move post last week’s sell-off

 

Nifty Outlook 20th Dec

 

Traders should avoid chasing the index after the upmove and rather look to lighten up longs around mentioned resistance. A stock specific approach shall be a better approach to trade in the markets for the time-being.

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

18250

43200

Support 2

18180

42985

Resistance 1

18490

43540

Resistance 2

18600

43540

 

How do you rate this article?
Characters remaining (1500)

FREE Trading & Demat Account
+91
''
By proceeding, you agree T&C*
Mobile No. belongs to
hero_form

Market Outlook Related Articles

Market Outlook for 16 July 2024

by Ruchit Jain 13th Sep 2024

Market Outlook for 15 July 2024

by Ruchit Jain 15th Jul 2024

Market Outlook for 12 July 2024

by Ruchit Jain 12th Jul 2024

Market Outlook for 11 July 2024

by Sachin Gupta 11th Jul 2024

Market Outlook for 10 July 2024

by Sachin Gupta 10th Jul 2024

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

Want to Use 5paisa
Trading App?