Market Outlook for 20 December

Our markets witnessed some intraday correction in Tuesday’s session, however buying interest was seen at lower levels and the index recovered from the lows and it tested 21500 mark for the first time. The index ended just above 21450 with marginal gains.

Nifty Today:

Since last three trading sessions, Nifty has been consolidating within a range but the bias still remains positive. Although the RSI readings on the daily chart of Nifty are overbought, there are no signs of reversal yet and thus, the trend remains intact until any reversal is seen. FII’s have around 60 percent positions in the index futures segment on the long side which is a positive sign. The immediate supports for Nifty are placed around 21330 followed by 21250 and till these are intact, the dips are likely to see buying interest. Only a break below 21250 would then apply breaks to the ongoing momentum and then some deeper retracements would be expected. On the higher side, if the index sustains above 21500, then it would continue its upmove in the overbought territory and one can then expect levels of 19650 and 19750-19800. Traders are advised to continue to trade with a positive bias, but avoid aggressive positions due to the overbought set ups.

Nifty continues its upmove in overbought zone and hits 21500

Nifty, Bank Nifty Levels and  FINNIFTY Levels: