NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 15 APRIL 2020

Nifty opened the week on a flat note on Monday April 13, 2020, but started correcting from first trade. It fell around 200 points within first hour of trade and then remained in sideways direction for the remaining part of the session. Despite the negative close, market breadth remains marginally in favor of the advancing counters. Nifty failed to hold 9000, & investors eyed PM Narendra Modi addressed on lockdown on 14 April 2020 at 10.00 AM & as expected prime minister declared that lockdown to be extended till 3 may 2020 as the Covid 19 cases are increasing in country. Nifty rallied almost 20% to hit 9000 mark on 13 april 2020. The Sensex ended 469 points lower at 30690, while Nifty was down 118 points at 8993. The market is shut today April 14 on account of Dr Babasaheb Ambedkar Jayanti.

The index is hovering around the 20-day EMA since last two sessions and now the 38.20% retracement of the entire fall from 12430 to 7511, which is placed around 9300, will act as a key hurdle. On the flip side, the immediate support inched higher to 8850 level and then the 8700-8500 zone. The broader market indices too are gearing up for another round of selloff. Fresh short position can be initiated once Nifty breaks 8900 on the downside. Initial target on the downside will be 8700. The near term trend for Nifty will remain intact. Inability to show upmove above 9150-9250 levels could end up in a beginning of minor decline in the next few sessions.  The expected downward correction could resume only on a decisive movement below the immediate support of 8900 levels. At the same time, a sustainable move above 9200 could bring bulls back into action.

Resistance: 9200, 9500

Support: 8900, 8500