Thursday, October 20, 2022

NIFTY BANKNIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 21 OCTOBER 2022

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Markets continued to consolidate on the weekly expiry day and closed marginally higher. Weak global cues prompted a gap-down start in the Nifty, but buying in IT, energy and banking majors not only pared losses but also pushed the index green. The Indian market ended Thursday, October 20th's volatile session on a positive note. At the close, the Sensex was up 95 points to 59202 and the Nifty was up 51 points to 17564. The surge in US yield, global market weakness and the unexpected drop in INR fueled selling pressures in the domestic market. Global investors are expecting the Fed to remain aggressive, raising rates by 75 basis points in the next two meetings, taking the benchmark rate to 4.50% to 4.75% by the end of the year. Markets are digesting recent gains but the tone is still positive thanks to palpable buying interest at each dip. However, we saw limited participation across all sectors, so the focus should remain on stock selection. Needless to say, further recovery in global indices, particularly the US, would reinforce the trend and help the Nifty gradually move towards the 17,800 level. On the technical front, the Nifty traded with the support of 21HMA and given the close above it suggests a strong bullish move. On the call side, the top was observed at 17800, while the put side was at 17400. The hourly momentum indicator STOACHSTIC traded with a positive crossover, suggesting a downside momentum in the upcoming session. Support for Nifty has shifted around the 17350 level while 17600 could act as an immediate hurdle on the upside. On the upside, Bank Nifty has support at 39300 while resistance lies at 40500. Overall, Nifty managed to close above 17500, any dips should be viewed as buying opportunities.

Resistance: 17600, 17700, 17800

Support: 17500, 17400, 17300

 

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