Market Outlook for 31 October 2024
Market Outlook for 21 December
Last Updated: 21st December 2023 - 10:47 am
Nifty started the day on a positive note on back of positive global cues and rallied towards 21600, but it witnessed a sharp sell-off in the later part of the day and the index ended at 21150 with a loss of of almost one and a half percent.
Nifty Today:
Nifty witnessed a reversal ahead of the weekly expiry day as it corrected sharply post noon along with the broader markets. While the momentum readings were overbought, a pullback move was due and which started in today’s trading session. The index has formed a Bearish Engulfing pattern which is a trend reversal pattern, and the RSI oscillator too has given a negative crossover from the overbought zone. Thus, the Nifty may have formed a short term resistance at 21500-21600 and would now retrace in next few days to relieve the overbought set ups. The correction could first extend upto 20950 which is the 23.6 percent retracement level, followed by the 20 DEMA support at 20760. On the way up, 213300-21350 will be seen as the immediate resistance zone followed by 21500-21600 zone. In the derivative segment, call writing was seen at higher levels while the put writers were seen unwinding the positions.
The Midcap and the Small Cap stock witnessed a sharp correction and this index has already corrected towards its 20 DEMA in a single session. But this high beta space could continue to remain volatile in the short term and thus, one should be a bit cautious here.
Nifty, Bank Nifty Levels and FINNIFTY Levels:
Nifty Levels | Bank Nifty Levels | FINNIFTY Levels | |
Support 1 | 20960 | 47050 | 21000 |
Support 2 | 20770 | 46650 | 20830 |
Resistance 1 | 21370 | 47600 | 21300 |
Resistance 2 | 21470 | 48000 | 21470 |
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