Wednesday, January 5, 2022

INDEX OUTLOOK & TRADING TIPS FOR WEDNESDAY 06 JAN 2022

In a highly volatile session, the domestic market witnessed a recovery following a mild dip though the global sentiments were not in favor of bulls. Increasing covid cases leading to stricter restrictions has pressurized market volatility. Index closed the day on a positive note for consecutive fourth session at 17925 with nearly 1% and formed a bullish candle on the daily chart. The banking sector outshone other sectoral indices as few private lenders reported double-digit business growth during the third quarter. IT stocks took a blow as investors awaited the onset of the quarterly results season. US and Asian markets traded weak ahead of the release of the US Fed meeting minutes while European indexes held ground. At close, the Sensex was up 367 points at 60223, and the Nifty was up 120 points at 17925.

Now index has reached near its good hurdle of 18000-18200 zone where one can look for trimming their long position, also if managed to sustain above said resistance we may see fresh breakout & then we may inch towards previous swing high.On the other hand good support zone is formed near 17850-17750 zone and any dip near mentioned support zone will be again fresh buying opportunity. Markets have crossed a significant barrier of 17900 and managed to close above the same. I believe from an uncertain/volatile environment Nifty is now headed for a directional move. We expect 18000-18500 levels in the medium term. Overall participation is expected to take place– value is seen in Metals, Energy, FMCG, and Banking stocks; IT stocks can be bought on correction post recent run-up.

Resistance: 17750, 17825, 17975

Support: 17675, 17620, 17575

           

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