Saturday, January 6, 2024

NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 08 JAN 2024

On January 5, Indian equity indices concluded the day higher for the second consecutive time, with the Nifty hovering around 21700. Closing figures showed the Sensex gaining 178 points reaching 72026, while the Nifty rose by 52 points, closing at 21710. The market witnessed 1798 shares advancing, 1494 shares declining, and 62 shares remaining unchanged.Although the Nifty commenced the day with a gap up, it struggled to sustain higher levels and experienced an intraday correction. During the downward movement, it successfully maintained above the crucial hourly moving averages within the range of 21650– 21625, subsequently rebounding to conclude the session with significant gains. Looking forward, we anticipate the Nifty to fluctuate within the range of 21550– 21800 in the upcoming trading sessions. The establishment of a definitive break beyond this range will likely determine the prevailing trend. Despite an overall favorable structure for the bulls, a period of consolidation is anticipated in the coming trading sessions. Meanwhile, the Bank Nifty underwent consolidation within the broad range of 48650– 47850, exhibiting a day of volatile trading. Throughout this process, it managed to hold onto the support at 47850, where the 20-day moving average provides additional reinforcement. Once this phase of range-bound activity concludes, a resumption of the next upward movement is expected. In the short term, we project a target of 49000 on the upside.

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