Nifty Outlook For - 30 December 2024
Market Outlook for 09 January 2024
Last Updated: 9th January 2024 - 11:07 am
Our markets started the week on a negative note as the indices corrected gradually throughout the day and the Nifty index ended just above 21500 with a loss of almost a percent, while the banking index posted a loss of almost one and a half percent.
Nifty Today:
Nifty continues to trade in an uptrend inspite of the minor pullback moves that we saw during last week. The index recovered from the support of 21500 which would be seen as the important support in the coming week as well. FIIs have not formed much fresh positions, but majority of their positions remains on the long side with 'Long Short Ratio' around 65 percent. The recent 'Higher Tops and Higher Bottoms' resembles probable formation of a 'Rising Wedge' pattern on the daily chart. In technical analysis, this pattern is usually seen as signs of exhaustion and if the price breaks the support then there could be some corrective phase. Considering the overbought momentum set ups, traders are advised to avoid aggressive longs now and trail stop loss higher at 21500 on existing long positions. However, till the index trades above 21500, it are not advisable to take contra bets. On the higher side, till the index trades above this support it can rally to form one more new high towards 21970. In case such scenario unfolds, then traders should start lightening up longs around the mentioned level. A break below 21500 would mean possibility of a corrective phase and hence, this level on the index should be referred as a stop loss on long positions.
Nifty Ended Lower, Amid Weak Global Cues
Traders are advised to avoid aggressive positions here and observe price action around 21400-21350 support zone if the index approaches that range.
Nifty, Bank Nifty Levels and FINNIFTY Levels:
Nifty Levels | Bank Nifty Levels | FINNIFTY Levels | |
Support 1 | 21400 | 47300 | 21230 |
Support 2 | 21320 | 47000 | 21150 |
Resistance 1 | 21600 | 47700 | 21350 |
Resistance 2 | 21700 | 48000 | 21400 |
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