Wednesday, January 19, 2022

NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR PRE-BUDGET SESSION 20 JAN 2022

Asian market continued to weigh on domestic stocks as weak global markets coupled with concerns that a rate hike by the US Fed could be on the cards sooner-than-expected triggered wide-spread selling for the second straight session. Markets traded under pressure and lost nearly 1 %, in continuation to the previous session’s fall. The market opened flat amid weak global cues however bears regained control as the day progressed and pushed the index gradually lower. Among the sectors, profit booking in IT, financials and FMCG sectors impacted sentiments. Consequently, the Nifty settled closer to 17938; down by 0.96%. The broader markets showed some resilience and ended almost on a flat note.

Weak global cues like rising US bond yields and crude at record highs are taking a toll on markets across the globe including ours. Besides, there's nothing much to support from the domestic front as well. At the top of it, volatility, due to the earnings, is further adding to the participants’ worries. Amid all, we reiterate our positive view on markets and suggest utilizing dips to add quality stocks. Nifty has next support at 17850 and major around 17750 zone. The Nifty breaking the important level of 17950 and closing below the same will be largely negative for the market. The index is likely to consolidate within the range of 17825 to 18025. For the bulls, 17950 would be the key level to watch for, and above the same the index could rally up to 18050-18100 levels. On the flip side, dismissal of 17950 would trigger one more leg of correction up to 17900-17800 levels.

Resistance: 18150, 18225, 18300

Support: 17925, 17850, 17800

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