NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 24 AUG 2022

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Markets saw heightened volatility as Sensex fluctuated more than 1,000 points on the day before late buying in banking, auto, metals and real estate stocks supported the recovery. Fear of uncertainty is evident in the market as it moves with high volatility, led by weak signals from global peers, while a stronger domestic economy offers some comfort. Global markets were under pressure with a rise in European energy prices and fears of rate hikes ahead of the Jackson Hole meeting. Domestically, gains in banks, autos and metals were offset by sales of IT stocks as the majors scale variable pay due to margin pressures. Benchmark indices closed higher on August 23 amid high volatility. To finish, the Sensex was up 257 points, to 59031 and the Nifty was up 86 points to 17577. Markets could see bouts of volatility in the coming days as global factors will continue to keep investors on edge. Technically, after opening a gap to the downside, the Nifty took support near the 20-day SMA (Simple Moving Average) and rallied strongly. Nifty ended the day with a significant green candle that pierced the body of the previous bearish candle on the daily chart. On the downside, the Nifty found support at a short-term moving average. Going forward, the trend could remain positive as long as the index sustains above 17500 . At the top end, 17600 can act as an immediate resistance; a decisive move above 17600 could trigger a rally towards 17800-18000 recent high. Nifty ended the day with a significant green candle that pierced the body of the previous bearish candle on the daily chart. On the downside, the Nifty found support at a short-term moving average. Going forward, the trend could remain positive as long as the index sustains above 17500. The Bank Nifty Index staged a strong rebound from lower levels and formed a strong bullish reversal candle. Index downside support lies in the 37900 -37000 range and as long as this support holds, the index remains in a buy-on-dip mode. The immediate upside hurdle is 38900 where call writers are active and once surpassed further short coverage is seen.

Resistance: 17900, 17950, 18000

Support: 17800, 17700, 17600