Market Outlook for 14 December 2023

Our markets witnessed higher volatility ahead of the US Fed policy outcome. The index initially corrected sharply due to sharp sell-off in the IT sector, but it recovered smartly from the lows and ended the day marginally positive above 20900.

Nifty Today:

The intraday volatility has increased a bit in last couple of sessions and the Nifty index witnessed selling pressure around its resistance zone of 21050-21100. However, the intraday dip witnessed buying interest on Wednesday and the broader market is still showing strength. Also, FIIs have increased long positions in the index futures segment as their long positions are now close to the 60 percent mark. Thus, the trend for the market still remains intact. However, the RSI readings on the daily time frame charts are overbought and also it will be crucial to see how the markets react to the FED event outcome. Thus, it's better to trade with a stock specific approach for the short term with limited exposure and proper risk management. The Nifty has resistance in the range of 21050-21100 as per the retracement theory and a move above this will confirm a continuation of the uptrend. On the flipside, 20750-20800 will be seen as the immediate support zone which if breached, then it could lead to a price wise corrective phase in the short term. 

Rise in volatility ahead of FED event, 20800-20750 important support

Thus, traders with long positions should place a strict stop loss below the mentioned support and lighten up longs only if Nifty breaks 20750. 

Nifty, Bank Nifty Levels and  FINNIFTY Levels: