NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 26 DEC 2023

On Friday, the market displayed volatility but ultimately closed in positive territory despite mixed signals. Starting off flat, the Nifty experienced significant fluctuations before settling at 21362 levels. With the exception of the banking sector, key sectors, including realty, IT, and metal, followed this movement. The broader indices also recorded gains, finishing higher within the range of 0.7% to 1.1%. The recent two-day rebound in the index has alleviated some pressure, and a period of consolidation around current levels would be considered a healthy development. Given the prevailing volatility across sectors, traders are advised to exercise caution in stock selection and overnight risk management.It is recommended to stick with index majors rather than midcap and smallcap counters. The lower-end support for Nifty is established at 21,200, providing a buying opportunity during any downturns. Sustaining above 21,300 could potentially lead to further upside momentum, targeting the 21,500 level. In the case of Nifty Bank, it successfully held the key support level of 47,400. Failure to sustain above this support may result in a decline towards the 47,100 levels. On the upside, the immediate resistance is at 47,700, and a breakout beyond this level might trigger short-covering, propelling the index higher towards 48,000/48,200 levels.