Wednesday, September 22, 2021

NIFTY OUTLOOK & OPTION CALL PUT TIPS 23-09-2021

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On Wednesday market made a cautious start tracking weakness in global peers. Markets managed to trade in the green territory in the late afternoon session. Traders were seen piling up positions in Realty, Consumer Discretionary, and Metal sectors while selling was witnessed in banks, Utilities, and FMCG sector stocks.  Sentiments remained positive even after Asian Development Bank (ADB) has revised down India's Gross domestic product (GDP) growth forecast to 10 percent for the current fiscal (FY22) from 11% predicted earlier, citing the adverse impact of the second wave of the pandemic. Also, investors are waiting for the end of this week's Fed meeting that may shed light on when its massive purchase of government debt will begin to ease. At close, the Sensex was down 77 points at 58927, and the Nifty was down 15 points at 17546.

After a robust pullback rally, benchmark Nifty witnessed a narrow range activity near the 17575 resistance level. On Wednesday, post muted opening the Nifty hovered in the range of 17550-17625 levels. It made a couple of attempts to clear the resistance of 17575 but failed to clear the hurdle due to tepid global cues and lack of follow-through buying activity.  For tomorrow the intraday trading setup suggests 17600-17650 levels would act as a key resistance level for the day traders and below the same, a quick intraday correction till 17550-17500 is not ruled out. On the flip side, 17650 could be the range breakout level for the day traders and above the same, the breakout continuation formation is likely to continue up to 17650-17700-17750 levels.

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Resistance: 17600, 17700, 17800

Support: 17500, 17400, 17300

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