Nifty Outlook - 8 Dec-2022

Ruchit Jain Ruchit Jain Ruchit Jain 8th December 2022 - 10:55 pm
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Our markets traded within a narrow range as the RBI policy outcome was on expected lines and did not have much impact. The index ended the day tad above 18550 with a loss of about half a percent.

 

Nifty Today:

 

The index has entered a corrective phase post the recent 2000 point rally in the Nifty as the momentum readings on the daily chart entered into the overbought zone. However, the index is still trading above its crucial support zone of 18500-18450 where the 20-day EMA is placed. Even the Bank Nifty index is trading above its 20 DEMA which is placed around 42650. Today’s event of RBI policy was already discounted in the market as 35 basis points rate hike was much anticipated based on recent RBI commentary. Now, all eyes will be on Gujarat Elections results where the exit polls have set certain expectations. If the outcome are in line with the same, then the market may not react much on the but any significant deviation from the expectations could then result in some sharp moves. However, traders focus should be more on the above mentioned support range and consider this ongoing correction to be a time-wise corrective phase as of now. But if the support is breached, then it would lead to a price-wsie correction where Nifty would then look to retrace the entire upmove of 2000 points. FII’s have unwound some of their long positions due to which their ‘Long Short Ratio’ have reduced from 76 percent to just above 60 percent now.

 

All eyes on Gujarat Election results now, 18500-18450 key support

 

Nifty 7 Dec 2022

 

This indicates that stronger hands have unwounded long positions in last few sessions. On the higher side 17600-17700 would be the immediate resistance range to watch on the weekly expiry day.

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

18500

42900

Support 2

18450

42750

Resistance 1

18640

43300

Resistance 2

18725

43500

 

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