Wednesday, January 20, 2021

NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 21 JAN 2021

Indian indices edged higher to end at record close on Wednesday, snapping two sessions of losses, led by gains in IT and Auto stocks. Supportive global cues led to a positive start which was further fueled by the buying in index majors. Consequently, markets touched a new record high led by healthy buying in RIL, Infosys & TCS were Top Contributors. Nifty Gains 124 Points to 14645 & Sensex 394 points To 49792.  Sensex Hits Intra-day Record High of 49874 & Nifty made high of 14666. Banknifty Relatively Underperformed & Ended With Gain of 119 Points at 32544.

The recent buoyancy on the global front combined with the supportive local cues is helping the index to regain momentum. However, volatility is still high on the stock-specific front. Keeping all in mind, we feel it’s prudent to continue hedged positions and prefer index majors over the others. From the low of 14222, the Nifty index registered sharp recovery towards 14,546 in a short span of time. This recovery has recouped more than 62%of the entire fall which was registered from 14653 to 14222. Retracement of more than 62% is considered as a negation of a primary down move. Bullish trend of Nifty has now got new support at 14,200 and with that stop loss longs should be held.

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Resistance: 14700, 14800

Support: 14500, 14400

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