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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