Nifty Outlook - 30-Dec-2022

After a negative opening, the nifty index traded in the red for most of the session, but in the second half the bulls staged a comeback on D-street and nifty recovered almost 200 points from the day's low, and ended at 18191 levels on the monthly expiry day. Banknifty trimmed its losses, gaining more than 700 points from the day’s low to settle at 43252 levels as most of the banking stocks recovered well from the bottom. Sectorally, Nifty PSU Bank & Private Bank gained 0.70% and 1.03% each. Nifty Metal added 1% and Energy surged 0.5% in a day. 

Nifty Today:

Overall, the nifty index recovered sharply in the last four days, after made a low at 17774; we witnessed positive momentum in the index. However, there was a tough fight between bull & bear for the last two days as on the downside, the highest put writing was at 18000 levels, while on the upside, 18200 was the import levels where the highest call writing was seen. Due to that, the market was trading between 18000 to 18200. Finally, on the expiry day, it moved up from the support zone and showed some recovery moves but was unable to breach 18200 marks. 

Technically, the nifty index has moved above the Rising Trendline but traded below 38.2% FR, which is at 18212 levels. Momentum reading is at 47 levels with a positive crossover on the daily chart. Moreover, the index has also shifted above the 50-days EMA, which supports further momentum. 

Hence, traders are advised to look for buying above the 18200 mark only. Once nifty sustains above that level, we can expect further upside till 18350/18480 levels. On the downside, the nifty has support at 18045 and 17950 levels while resistance is at 18350 levels. 

Nifty & Bank Nifty Levels: