NIFTY OUTLOOK & OPTION CALLS FOR 16 JAN 2020

The Sensex and Nifty snapped their two-day record breaking spree weighed down by losses in banking shares. For most part of the day, market traded lower but staged a mild recovery in the last 30 minutes of trade. At the day's lowest level, the Sensex fell as much as 305 points and the Nifty index briefly dropped below its symbolically important level of 12300. The Sensex ended 80 points lower at 41873 and the Nifty declined 19 points to settle at 12343.

We expect market would remain volatile in the near term. The index formed a bullish candle on the daily scale and needs to hold above 12300 to extend gains towards 12400, and then 12450 -12500 zone. Overall setup and momentum is positive and a hold of recent zones could extend rally, while support exists at 12200 and then 12100 levels. It has been making higher top and higher bottom formation and supports are gradually shifting higher with medium term support at 12000. 

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Resistance: 12400, 12500

Support: 12200, 12100