Monday, December 28, 2020

NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 29 DEC 2020



Nifty soared sharply following a breakout of previous minor swing high. Previous week’s doji gets ignored as the Bull Run in the index continues unabated. From a pattern recognition point of view Nifty has moved above the previous swing high and the pattern of higher highs and higher lows continues. Nifty has also moved above last Monday’s long red candle as the market negating the bearishness of the previous week. Nifty is now hitting the top end of the channel and if the channel breaks and nifty moves above it. The rally should continue. 13750-13800 was a major resistance zone once we apply advanced Fibonacci applications.

Nifty R1 Weekly Pivot is at 13970 and beyond this the resistance shifts to 14150-14200. The support for Nifty is at 13655-13670. As long as this level holds the rally should continue. RSI on the weekly and the daily is above 70 indicating strong momentum when it is seen with ADX which indicates a strong trend. The momentum in the market is good and proper. Stay long. Any dips to 13755-13810 would indicate buying opportunities. We are poised to hit 13,910 and then 14000 but we might face some resistance around the present levels of the Nifty. There could be a bout of selling pressure near 13855-13955. We have good support at 13540-13595 and any corrective wave can be utilized to buy into this upward rally.

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Resistance: 13900, 13950, 14000

Support: 13800, 13750, 13700

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