Monday, September 19, 2022

NIFTY & BANKNIFTY OUTLOOK AND OPTION CALL PUT TIPS FOR 20-09-2022

The market gained more than 0.5% in a volatile trading session, taking a breather from recent declines. The Nifty Index recovered quickly in his first hour after the initial drop, then remained range bound. Meanwhile, sector trends have been mixed, with banks, fast-moving consumer goods and autos showing strong buying interest, while real estate, energy and metals have retreated. Nifty has been in short-term adjustment mode this past week. Following last week's bearish momentum, the index fell in its first trading session on Sept. 19. It fell to test the 40 DEMA, providing buying support. As a result, Nifty bounced off his 20 DMA, which was his daily cap. The market showed a sensible recovery as Nifty gained momentum amid a cautious tone. There was even a rally as investors reassessed their aggressive bets on Fed tightening amid looming recession risks. 

The trader is now looking forward to his main FOMC monetary policy meeting on September 20-21. India's benchmark index breaks three-day losing streak as Nifty rises above 17600. Upon completion, Sensex rose his 300 points to 59141 and Nifty rose his 91 points to 17622. The index is creating a moderate degree rebound after the first leg of the decrease in the previous week, according to the general structure. The following leg down is anticipated to come after this modest degree rebound. Thus, from a short-term perspective, sell on rise will be the best option. The index will probably stutter about 17680–17775. The index is anticipated to drop to 17425–17250 on the following leg down. Given the weak global indications, we anticipate choppiness to persist, thus it is wise to take positions on both sides. The banking and financial sectors are performing as expected, and we are observing selective purchasing in the auto and FMCG sectors as well on dips. On the other hand, equities mostly in the IT and pharmaceutical sectors are trading negatively. Participants should take appropriate postures.

Resistance: 17400, 17550, 17700

Support: 17300, 17150, 17000 

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