Wednesday, October 20, 2021

NIFTY OUTLOOK & OPTION CALLPUT TIPS FOR 21 OCT 2021




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Market extended its downward rally and was trading near day's low as heavy selling was seen in realty and metal stocks. The selloff was more significant in the broader market space where the Small Cap and Midcap index dropped over 2.5%. Other than Telecom all other indices are in the negative zone. Market witnessed sell off for a second consecutive session alongside, the long-term economy & market trend is intact due to further re-opening of the economy, low-interest cycle and fiscal & private spending. This correction will give leeway for value-buying, defensives and upcoming stocks & sectors that evolved from this new demand. At close, the Sensex was down 456 points at 61259, and the Nifty was down 152 points at 18266.

The market witnessed a correction and an attempt to hold 18250. Research suggests that 18250 will be an important support zone for to stay positive in the short term. If the market is unable to sustain the level of 18250, it can witness the correction would continue till the level of 18200-18100. Technical indicators suggest a volatile movement in the market. We believe the profit booking which was witnessed today is healthy for the market and any significant dip is a good opportunity to accumulate quality stocks. Immediate support for Nifty is 18200. The ongoing market correction is not an overreaction and can sustain in the near-term due to high valuations. However, in the future Indian corporate will benefit from the reforms & China plus one strategy which happened during 2020-21. 

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Resistance: 18300, 18400, 18500

Support: 18200, 18100, 18000

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