Monday, December 21, 2020

NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 22 DEC 2020

Bears took the charge Indian markets fell sharply today, snapping its recent record-breaking streak. The Sensex ended over 1400 points lower at 45553 after sliding over 2,000 points at day's low. The Nifty ended 3.2% lower at 13328 with broader markets also seeing a big selloff. The BSE midcap and smallcap indices slumped over 4% each. Though many analysts were expecting a consolidation after the recent upmove, the intensity of today's crash took everyone by surprise. The new variant of the coronavirus in the UK spooked markets as we witnessed intense selling in pivotal throughout afternoon trade. While the Street was bracing for a correction this week after a sharp upmove, the sheer velocity of the fall across broader markets took the bulls by surprise as practically none of the key indices constituents were in the green today.

We threatened the lower end of the range by piercing 13300 on an intraday basis but the Nifty was quick to bounce back to close above it. If the level of 13300 is breached, we can slide down to targets closer to 11250-11200. The resistance on the upside is at 13400.

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Resistance: 13350, 13400, 13450

Support: 13250, 13200, 13150

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