Thursday, October 13, 2022

NIFTY BANKNIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 14 OCTOBER 2022

Indian market closed October 13 session on a negative note amid volatility. Markets continued to enjoy a turbulent ride as weak signals from Asia acted as a dampener, although positive European markets helped mitigate the decline. Somber sentiment stemming from global economic uncertainty has accelerated the decline in recent sessions. At the close, the Sensex was down 390 points to 57235 and the Nifty was down 109 points to 17014. Bank stocks bore the brunt of broader pessimism over concerns that a rising interest rate regime could hurt demand for credit. The Nifty is steadily taking support near the 200-day SMA (Simple Moving Average) or 16975 while facing strong resistance at 17175. A sharp corrective wave is possible if the index trades below 16975 and further decline could slip to 16900-16800. The Banknifty saw some selling pressure at the top end and faces strong resistance around the 39400-39900 level where aggressive call writing has been observed. The banknifty remains in a downtrend with lower highs and lower lows intact. If the index breaks below 38500 on a closing basis, it will result in another sell-off towards 38,600-38200. Immediate upside resistance stands at 39500 and if it breaks there will be some short covering moves.

Resistance: 17100, 17200, 17300

Support: 17000, 16900, 16800

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