Market Outlook for 06th December 2024
Nifty Outlook - 21 Dec-2022
Last Updated: 20th December 2022 - 05:48 pm
After the recovery seen in Monday’s session, Nifty started Tuesday’s session on a negative note and it corrected to breach the previous day’s low and almost test 18200 mark. However, the index recovered most of intraday losses post noon it ended the day tad below 18400 with a marginal loss.
Nifty Today:
The pullback move in Monday’s session ended around the trendline which was broken and the follow up move in Tuesday’s session indicated a resumption of the downmove after testing the trendline resistance. However, since the Nifty has already seen a price-wise correction from 18888 to 18200 in last couple of weeks, the momentum readings on the hourly chart entered the oversold territory and intraday charts witnessed some divergences which led to the tail end recovery. The daily chart structure still indicates a corrective phase, but since the lower time frame charts are witnessing recovery from oversold territory, some ups and downs are likely to continue in the near term. Hence, it is better to trade cautiously and trade with a stock specific approach until there is confirmation of the momentum turning bullish again. On the higher side, 18500-18570 would be seen as an immediate resistance zone while 18200 is the immediate support now. Below 18200, 18135 and 18070 would be the levels to watch in the short to medium term.
Market recovers in later half due to oversold set ups on hourly charts
The options segment hints at resistance in the range of 18500-18600 where maximum open interest build up is seen while 18200 put option has decent open interest outstanding which would be the immediate support.
Nifty & Bank Nifty Levels:
|
Nifty Levels |
Bank Nifty Levels |
Support 1 |
18290 |
43060 |
Support 2 |
18200 |
42775 |
Resistance 1 |
18460 |
43540 |
Resistance 2 |
18530 |
43720 |
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