Wednesday, December 15, 2021

NIFTY OUTLOOK FOR 16 DEC 2021


Markets continued to decline for a third straight session on Wednesday 15 Dec 2021 on the back of unsupportive global cues. The Nifty index ended lower by 103 points at 17226 levels. Most of the sectoral indices traded in tandem with the benchmark and ended lower. The broader markets too witnessed selling pressure as both Midcap and Small cap ended lower by 0.5% and 0.3% respectively. All eyes will be on the US Fed meeting tonight and we’re going to see the reaction in early trade on Thursday. While the majority expects that the committee would hold rates citing the possible challenges due to the new COVID variant, commentary on tapering, inflation and growth would be critical. Besides, we have weekly derivatives expiry scheduled, so expect choppiness to remain high. Participants should wait for some clarity over the direction and limit positions.

The Nifty witnessed continued selling pressure near the key hourly moving averages & the 20 DMA. Recently, it had formed a Popgun pattern on the daily chart & as a follow through of the pattern, it is sliding down. For the last couple of sessions minor bounces are getting restricted near these key short term moving averages. Thus 17300-17350 will continue to act as a near term resistance zone. On the downside, the index is approaching 61.8% retracement of the recent leg of the rise. The key Fibonacci level, which is near 17175, is the immediate support to watch out for. If that is breached then the fall can extend towards 17100 on the downside. 

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Resistance: 17300, 17400, 17500

Support: 17200, 17100, 17000

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