Market Outlook for 28 December 2023

The benchmark indices extended their bull-run and set a record high one day before the monthly expiry. The nifty index topped 21675-mark for the first time while Banknifty hit 48347 highs on 27th Dec. The strong momentum has been witnessed in the market after the recent correction; even the volumes remain thin due to year-end holidays. 

Nifty Today:

After the positive opening, the nifty was trading within the range but holding the support at 21500 levels, in the second half of the session, the market shown some strength and    hit a new milestone, closing at 21654 levels with 200 point gains. While, Banknifty settled above 48250 levels, which was the immediate hurdle for the index. 

Major contributors in the index were HINDALCO, ULTRACEMCO, DALMIABHARAT & BAJAJ-AUTO, all have added more than 3% in a day while the major laggards were VEDL, REC, CUMMINS during the day. On the options front, the nifty 21500PE has a highest OI build-up followed by 21600 strike prices while on the CE side 21800& 21700 strike price has higher open interest that indicates the nifty range in between 21500 to 21700 for the coming day.

On the technical scale, the nifty has been moving in bullish territory with higher highs & higher lows formation and holding above 20-DEMA that suggests upward momentum for the near term. However, a volatility index INDIAVIX has also acted positively with 6% gain and moved above the prior resistance of 14 levels.  So some volatility can be seen in the index in the coming days but buying strength may continue as the market is strongly positive. Hence, traders are advised to follow buy on dips strategy and focus on stock specific action.
 

Nifty hit another record high before the monthly expiry

Nifty, Bank Nifty Levels and  FINNIFTY Levels: