Thursday, December 30, 2021

NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 31 DEC 2021



December has been quite a volatile month for Nifty, wherein Nifty has bumpy ride between the level 16400 to 17600. Currently, it looks like Nifty is going to end 1-1.5% up for the month of December. On the monthly expiry Thursday of December f&o series market ended on a flat note today with Nifty at 17204 and Sensex at 57794. Investors preferred to stay on the sidelines. The year-end celebrative mood or hope of "Santa Claus rally" was missing with totality albeit with no conviction and limited breadth. In today’s choppy session, good buying interest is seen in selected IT and pharma stocks while some selling pressure is seen in metal and real estate names. Overall Global markets were mixed today as investors are uncertain about the consequences of surging Covid 19 cases in different parts of the world. 

The Nifty traded in a narrow range throughout the Thursday 30 December 2021 & ultimately posted a negative daily close. For the last couple of sessions it is trading in a range bound manner & has formed candles resembling Doji pattern on the daily chart. This shows exhaustion in the pullback. Formation of these candles below the junction of a falling trend line & the 40 DEMA suggests that the index is encountering a tough barrier on the higher side. In terms of the levels, 17250 is keeping the rise in check & can continue to pose as a key hurdle. Unless the level of 17250 gets taken out on a closing basis the Nifty is expected to take a dip in order to fill up a recent gap area of 17150 – 17125 with a potential to test 17000 on the downside. 

Resistance: 17250, 17350, 17450

Support: 17150, 17050, 16950

                                               

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