Thursday, November 19, 2020

NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 20 NOV 2020

After long run bulls took breathe on Thursday. The increasing virus infections raised fears of additional restrictions and considering its impact on global economic activity, global market sentiments turned negative. This was in spite of the optimism surrounding the advanced stages of vaccine development. Market also witnessed profit booking from recent highs, as investors turned cautious.  Deep cuts in the shares of Coal India (down 4.41%), SBI (down 4.40%), ICICI Bank (down 3.61%), JSW Steel (down 3.24%) and UltraTech Cement (down 3.15%) dragged the Nifty on Thursday, as nifty tanked 142 points to trade at 12796.

At close, the Sensex was down 580 points at 43599, and the Nifty was down 166 points at 12771. After a gap down, the Nifty turned positive but was unable to sustain that for very long. It went back into negative territory but has not broken the support of 12,500 which means the trend continues to remain bullish. 13100 still remains an open target which the index can achieve by the end of the November series.

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Resistance: 12800, 12900, 13000

Support: 12700, 12600, 12500 

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