NIFTY WEEKLY OUTLOOK FOR 26 DECEMBER TO 30 DECEMBER 2022

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WEEKLY RESISTANCE FOR NIFTY: 17950, 18200, 18500

PIVOT POINT: 17800

WEEKLY SUPPORT FOR NIFTY:  17700, 17600, 17500

WEEKLY CHART FOR NIFTY

Our market started the week beginning December 19, 2022 on a flat note, aligning with mixed global exchanges. Shortly after the opening bell, the bulls took the opportunity and rallied slightly in the benchmark index, after which narrow range-bound moves were seen for most of the day. However, the market continued to gain traction in the penultimate hour as broad-based buying took hold and sent general sentiment floating. Amid the strong trading day, the Nifty settled near the daily high, sourcing eighths-tenths of a%. On December 20, 2022, Indian equity markets got off to a slow start, modeled on gloomy global stock markets. Benchmark index Nifty50 had a gapped open, slipping below Monday's low early in the session and remaining in a narrow range in the lower range for most of the day. However, in the penultimate hour, the bulls recovered slightly, paring the initial loss. Amid the volatile session, Nifty ended the day down just 0.19% and settled a little below the 18400 level.  On December 21, 2022, Indian stock markets plunged ahead of the weekly expiration, with the benchmark index Nifty50 slipping over 300 points, ending the day forming a strong bearish candle. The sell-off intensified in the second half of the session, taking the index below Tuesday's low and dampening market sentiment. Amid the selling pressure, the index settled slightly below the 18200 level with a decline of nearly 1 percent. On December 22, 2022, the Indian stock market plunged over the Covid issues and corrected for the third consecutive day of the week. The benchmark Nifty50 index saw a gradual decline throughout the day, crashing below 18100 on the day of weekly expiry. However, after the frenzy in Thursday's session, the index managed to settle slightly above the 18100 level with a 0.39% decline. ON Friday 23rd December 2022 markets fell sharply continuing the prevailing corrective trend. After the gap down start, Nifty gradually dipped lower over the course of the session and eventually neared the daily low to close at 17,806. Pressure was widespread with PSU banks, metals and energy stocks being hit hard. The broader indices underperformed the benchmark.

NIFTY : STRONG SUPPORT & STRONG RESISTANCE LEVEL

Technically, the market has entered a cycle of forming lower lows and lower highs and until the 18500 zone is decisively breached the ongoing trend remains intact. On the lower end is the sacrosanct support around 17800-17700-17600, which is highly expected to remain intact. On the upside, 18200-18300 is seen as intermediate resistance before the 18500 major hurdle.

TECHNICALLY SPEAKING

Markets went into frantic selling as weak global cues and bearish external factors pushed both major benchmark indices below psychological levels. Alongside the rise in Covid cases in China and Japan, better-than-expected US Q3 GDP numbers have raised further concerns that the Fed will make further rate hikes to tame inflation, fueling selling pressure in markets further strengthened. Technically, the index closed below the 50-day SMA (Simple Moving Average) after a long stretch and also formed a long bearish candle on weekly charts that is largely negative. For traders, as long as the index trades below 17900 the corrective wave is likely to continue and below that the index could slip as low as 17700-17,500. On the upside, 18,000 could act as a sacrosanct resistance zone. Firing 18,000 could push the index to the 50-day SMA or 18200-18500.