Thursday, July 28, 2022

NIFTY BANKNITY OUTLOOK & OPTION CALL PUT TIPS FOR 29 MAY 2022

FOR THE LIVE TRADING TIPS WHATSAPP ON 9039542248

Positive stimulus from global markets following the Fed's policy outcome, as well as positive gains in domestic large caps, drove the market rally. The Fed's decision came as expected, while its positive commentary, dismissing the possibility of a recession and pointing to a slower pace of rate hikes in the coming months, boosted sentiment around the world. Benchmark indices closed higher for the second straight day on July 28 with Nifty closing above 16900. At the close, the Sensex was up 1,041 points, to 56,857 and the Nifty was up 287 points, to 16929. The Indian rupee firmed, potentially attracting foreign funds into the domestic market. Domestic investors are now preparing for the RBI's MPC meeting next week and expect a rate hike of 25-50 basis points. Indian benchmark indices outperformed their Asian peers on the last day of the month as there was no surprise in the US Federal Reserve's rate hike decision, which matched expectations and fueled a rally in US markets. The optimistic sentiment also spilled over into the domestic market, leading to buying of banking, IT, metals and real estate stocks. Investors believe the RBI will also not come up with a big surprise at the monetary policy meeting in the next few weeks on hopes that inflation is on a downward trajectory. Technically, the Nifty has formed a long bullish candle on the daily charts that is largely positive. The short-term trend looks positive, but due to temporary overbought situations, we might see some profit booking at higher levels. For traders, the 200-day SMA (Simple Moving Average) of 17025 and 17100 would act as the immediate resistance levels. On the upside, 16800-16750 could be key support levels. Dalal Street staged a spectacular rebound, reflecting optimism in global equity markets amid oversold conditions, with the Fed's decision to hike rates by 75 basis points signaling nifty bulls to move higher. On the upside, benchmark Nifty and many momentum stocks shone throughout the day. The buying rush just kept going. Technically, if Niftys stays above its make-or-break support at 15621, the trading theme could shift to excited bulls and arrested bears between weeks. The Bank Nifty Index continued its upward trend and breached the immediate hurdle of 37200. The index remains in buy mode with immediate support in the 37,000-36,800 range. The next hurdle is at 37800, where a significant amount of call writing has been observed. The RSI remains in a buy zone as long as it trades above the 60 level. Nifty has moved above its previous swing high, suggesting a bullish move higher. Also, a bullish crossover of short-term moving averages should provide short-term tailwinds for the index value. On the upper end, resistance is seen at 17050/17150, while on the lower end, support is seen at 16800. Thus, 16700-16500 is now becoming a near-term support zone. As long as the index trades above this zone, it can continue to rise towards 17000 where there is a 61.8% retracement of the April-June decline and the 200 DMA. If the bulls manage to clear the 17000 level, the index can extend towards 17200 in the short term.

Resistance: 17000, 17200, 17400

Support: 16800, 16600, 16400

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