Wednesday, April 20, 2022

NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 21 APRIL 2022

TO GET LIVE TRADING TIPS PING ON WHATSAPP 9039542248

The mayhem of the last hour on Tuesday was followed by a modest gap on Wednesday, April 20, 2022, which opened on a spectacular overnight rally in US stock markets. Around mid-session, Nifty even proceeded to retake the 17200 mark. However, as we re-entered the last few hours of the session, the market started to get a bit timid. Fortunately, it wasn't any closer to weakness on Tuesday as Nifty maintained its position well within positive territory to close for percentage gains. A pullback rally in global markets lifted sentiment as benchmark indices traded higher. Nifty has regained his level of 17000. Among sectors, the Nifty Auto Index outperformed the rally by over two percent. While metals and media stocks saw a technical sell-off. The benchmark index Nifty showed tremendous resilience today; but Banking sulks throughout the session. Therefore, the Nifty could not stay behind the stable wall of 17200.

Technically, after today's rally, the Nifty is still trading below its 200-day SMA, which is largely negative. On daily charts, Nifty has formed a small bullish candle inside the body and on intraday charts. Nifty consistently finds support near 17050. As for direction, the medium term trend is still down. But pullback rally continuation is not ruled out if the Nifty manages to trade above 17050. For traders, 17050 would serve as a trend maker above which Nifty could rally to 17250-17350. However, below 17050 the uptrend would be vulnerable. Below that, the chances of reaching the 16950-16900 level would improve. Fortunately we are convincingly back above 17k and as such any positivity from global peers or our banking division would bring strength back to our market. As for levels, 17200 17300 remains a high hurdle and only a sustained move above it would result in strong momentum for the heavyweights. On the upside, 17000 remains a sacrosanct support. Given the general caution, we advise traders not to trade aggressively and proceed with a stock-specific approach.

Resistance: 18150, 18200, 18250

Support: 18000, 17950, 17900

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