Thursday, December 26, 2019

NIFTY OUTLOOK & OPTION CALLS FOR 27 DEC 2019

Bears pulled the nifty below 12150 mark on expiry day of F&O Dec series. Consolidation extends on account of F&O expiry led volatility and concern over the fiscal math of the government due to possible delay in divestment's planned this fiscal. Global markets seem to be in comfort zone fulled by hopes of easing trade tension, while the domestic market is expected to wait for cues from Budget . The Nifty opened on flat note today however succumbed to the selling pressure in a gradual manner. On the way down the nifty breached to the near term support 12100 level.  Market ended lower for the third consecutive day on December 26 with Nifty finished below 12150. 
At close, the Sensex was down 297 points 41163, while Nifty was down 88 points at 12126.  As a result the index traded with a bearish bias throughout the day & ultimately closed near the low for the day. The recent decline is largely on the expected lines and it’s healthy for the markets. Nifty has immediate support at 12000 and we may see a rebound from that zone in the index.  it has the strong support of line of parity and 20 DMA near 12080 zone and the possibility of prices reversal cannot be ruled out, whereas index trading above 5 DMA placed around 12200 will confirm the continuation of bullish move.
Resistance: 12200, 12300, 12400
Support: 12100, 12000, 11900

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