Market Outlook for 06th December 2024
Nifty Outlook - 27 Sep-2022
Last Updated: 11th December 2022 - 08:56 am
The markets continued its corrective phase with another gap down opening and the index breached the 17000 mark in the initial couple of hours. The Nifty attempted for a pullback move from lower levels, but the bears have a firm grip as the index witnessed selling pressure on pullbacks and it ended tad above 17000 with a loss of over 300 points.
Nifty Today:
Nifty witnessed another gap down opening and continued its corrective phase as the Dollar Index continued its up move and the INR depreciated further and surpassed 81.50. The rise in the Dollar Index since last week and a sharp depreciation in INR have been the prime reasons for the sharp fall in Nifty. FII’s have formed more short positions in the index futures segment and they have been selling in the cash segment too. Until we see any reversal in the above data, the equities will continue to witness selling pressure and this decline from the high of 18100 seems to be an impulsive decline which is not completed yet. So the short term trend continues to be negative and hence, we continue with our advice for traders to stay cautious from a short term perspective. The immediate supports for Nifty are placed around 16880 (200DEMA) and 16765 (161.8% retracement of the previous correction). The RSI oscillator on the daily chart continues to show a negative momentum but is approaching the oversold zone on the lower time frame charts. Hence, a pullback move from around these supports cannot be ruled out. However, it continues to be a ‘Sell on Rise’ market and thus traders should be cautious on pullback moves. The immediate resistances for Nifty are around 17200 and 17300.
Downtrend continues for equities as Rupee depreciates further
Nifty & Bank Nifty Levels:
|
Nifty Levels |
Bank Nifty Levels |
Support 1 |
16880 |
38330 |
Support 2 |
16765 |
38042 |
Resistance 1 |
17200 |
39066 |
Resistance 2 |
17300 |
39516 |
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