Friday, October 7, 2022

NIFTY BANKNIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 10 OCTOBER 2022

Markets paused after the recent rebound and ended almost flat as there was no major trigger. After a flat start, the Nifty Index traded in a tight range and eventually settled closer to the daily high to close at 17314. Most sector indices traded in sync with the benchmark and ended flat. Meanwhile, stock-specific moves across sectors kept participants busy. Markets ended the choppy session uninspiring as caution was warranted given the lack of clarity on the Fed's prospects for a rate hike. As widely expected, the benchmark consolidated gains ahead of the US jobs report. The benchmark Nifty remained volatile before closing on a muted note. However, the index closed above the 50 EMA, confirming the ongoing positive trend. To close, the Sensex was up 30 points at 58191 and the Nifty was up 17 points at 17314. Global markets, particularly the US, are still showing no sign of a sustained recovery so volatility will persist and participants should plan their overnight positions accordingly. Meanwhile, the tone on the index front would remain positive until the Nifty holds 17250. In our view, the prudent approach is to focus on best-performing stocks across sectors and use interim declines to add to them, rather than chasing laggards in hopes of a recovery. Looking ahead, the trend is expected to remain positive as long as the Nifty holds above 17300. On the upper end, the 17500-17600 zone can act as resistance, while on the lower end, 17250 support is visible. Bank Nifty remained volatile throughout the day. However, the index has managed to hold above the 50 EMA on the daily chart. The RSI is entering a bullish crossover. In the short term, the index could move towards 40000. Support at 38700 is visible on the lower end.

Resistance: 17400, 17550, 17700

Support: 17300, 17150, 17000 

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