Market Outlook for 22 December

Post yesterday’s sell-off, Nifty started the weekly expiry on a negative note and sneaked below 21000 mark. However, the indices recovered from the lows and maintained a positive bias throughout the day to end above 21250 with gains of half a percent. The Banking index too witnessed a smart recovery to close above 47800 with gains of eight-tenths of a percent.
 

Nifty Today:

Our markets corrected sharply in Wednesday’s session as the momentum readings on the key indices were too overbought post the recent run-up. However, the buying interest on corrections seems to be very strong as any declines are being used by traders as buying opportunities. Infact, the FIIs were net buyers in the index futures segment even during the correction and their ‘Long Short Ratio’ has increased to about 65 percent. On the lower time frame charts, Nifty has retraced 50 percent of previous day’s correction which was around 21285 while the Bank index rallied sharply higher in the later part of the day.  The overall market breadth remains strong and indicates a firm market, but still Nifty needs to surpass key levels for a continuation of the momentum. The immediate support for Nifty is placed around 21000-20950 while resistances are seen around 21360 followed by 21500-21600 zone.

Market recovers post one day’s correction, 21000 acts as support 

Traders are advised to look for stock specific opportunities from a trading perspective and trade with proper risk management.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: