NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 23 DEC 27 DEC 2019

WEEKLY RESISTANCE FOR NIFTY: 12300, 12400,12500

 PIVOT POINT: 12200

WEEKLY SUPPORT FOR NIFTY:  12100, 12000, 11900

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 12300, 12350, 12400

PIVOT POINT: 12250

DAILY SUPPORT FOR NIFTY:  12200, 12150, 12100

DAILY CHART FOR NIFTY

The Christmas party began for the bulls… The index is all set to have highest ever closing to see off 2019 with a bang.  The Bull Run continues for our markets and the index achieved our given target of 1200-12300 for this week.  The Nifty was indicating a sluggish start, our markets opened higher above the 12100 mark. However, it was merely a formality as we saw index giving up all gains in early trades and thereafter, traded in a flat terrain for quite some time. At the midst of the day, some buying emerged at lower levels and the Nifty was back into the positive territory. But this time, the selling aggravated in the last hour to pull the index considerably lower to conclude the session with nearly three tenths of a percent cut. Post a positive close in the US markets, the Asian markets were trading in the green and this led to a positive opening for our markets as well on Tuesday. After opening marginally positive, the index rallied higher throughout the day and ended the session at new record highs to register gains of almost a percent. In spite of a tepid start for the week, the index resumed its momentum in Tuesday’s session and rallied higher to register new record highs. Post the recent corrective phase; the index had resumed the uptrend during last week and Tuesday’s move was continuation of the ongoing uptrend.  Tuesday’s strong close was followed by a gap up opening on Wednesday as indicated by the Nifty early in the morning. During the remaining part of the day, index maintained its positive posture as we saw series of ‘Higher Highs Higher Lows’ on intraday time frame. In last couple of hours, the buying momentum accelerated a bit and as a result, the Nifty went on to post highest ever close well above the 12200 mark. Inspite of the muted global markets, our markets opened marginally positive on Thursday. The index witnessed a minor dip in the first hour towards the 12200 mark which was eventually bought into. The Nifty continued its northward journey in uncharted territory and ended the session above 12250. On Friday market takes a breather after 3-day rally, ends flat; Nifty inched up to 12270.

NIFTY: A STRONG SUPPORT WILL BE @ 12150; STRONG RESISTANCE LEVEL SEEN @12375

The market continues to be in the direction of the primary trend. As of now, there are no signs of any divergence and hence, we expect this move to continue going ahead. Hence, traders should look to find stock specific opportunities in the direction of the trend and avoid taking any kind of contra trades. For the coming session, 12325 followed by 12375 are the immediate resistance whereas 12225-12150 continues to be the support zone.

TECHNICALLY SPEAKING.

Although we had seen a tepid start for the week, the Nifty again took support of 12000 and resumed its higher degree uptrend. Based on the basic principle in bull market of ‘Buy on dips’, we were optimistic in the recent corrective phase and this strategy worked quite well since last few months. Now, if we look at the recent chart structure, Nifty has managed to form a support base in the range of 11850-11800 twice in the recent past (i.e. in mid-November and in last week) and hence, this range now becomes a sacrosanct for the near term trend. Nifty formed a small bullish candle on daily & weekly charts as the closing rate was higher than the opening tick. One interesting thing was a buy signal triggered by MACD indicator, or Moving Average Convergence/Divergence indicator, on the weekly & daily charts. The technical-chart patterns indicate that there could be a consolidation in the coming sessions. Today's vertical move facilitated a buy signal on daily MACD chart while pushing the index for a close above upper Bollinger Band. Usually this kind of behavior on indicators, accompanied with over-bought readings on several other technical parameters on lower time-frame charts, is hinting at the need for some corrective and consolidation phase before taking the index further into uncharted territories. The resistance is visible in the 12300–12375 zone, where upsides can be capped. As risk reward ratios from the current levels may not favors a long-side trade, short-term traders to remain neutral on the buy side and wait for some correction before going long. Shorting can be considered on a close below 12200 for a target of 12150. . Hence, we continue with our optimistic stance and advise traders to trade with a positive bias. As per the reciprocal retracement theory, the probable target for Nifty in the near term is seen around 12275-12375, whereas the immediate supports are placed around 12225 and 11150 levels.