NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 16 APRIL 2020

After starting on a promising note, the market indices slipped into the negative territory and ended with around a per cent loss on Wednesday as worries over economic downturn due to the extension of the nationwide lockdown weighed on the investor sentiment. Additionally, IMF's Tuesday‘s statement  that the global economy faces the worst recession since the Great Depression in the 1930s due to the raging coronavirus pandemic also dented the investor confidence.  The Sensex slipped 310 points to settle at 30380 levels. The index hit a high of 31568 levels during the day. The banknifty declined over 2% to 19057 levels. Nifty shed 68 points to 8925 levels.

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