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As far as Nifty future levels are concerned, 13636 - 13676 continues to be a key resistance zone; whereas on the lower side, crucial support base shifts at 13533 - 13474 now. A move below this support zone would result in an extended correction.
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Dear Trader…
The Indian stock market saw a bullish move with a two-way slump. The market was relieved by reports that the corona vaccine would also be effective in new strains of corona in Europe, including the UK, on the other hand, an estimated 900 billion worth of stimulus was approved by the House of Representatives, with a positive impact on the Indian stock market.
The coming session would be interesting to see because we are heading for an extended weekend on the back of Christmas holiday and since it’s a weekly expiry, we are likely to witness some higher volatility. Traders are advised to stick to stock centric moves; but avoid aggressive bets in high beta names.
The bull run in the equity market is likely to continue in days ahead, but the only concern at this point is the "too strong" derivatives data, which may lead to a rapid sell-off in case of a course reversal, at current juncture, market is in bulls grip and dips are getting bought into quickly.
Nifty's derivatives data is also positive and it indicates continuation in ongoing momentum. It was a historic month for the market as Nifty posted highest ever series on series gains. Bulls were aggressive from the start of the November series and kept the ball in their court throughout the series. FIIs index futures data signifies they are overbought in Indian market and any unwinding of longs or fresh shorting may lead to a correction in the market.
India VIX fell 6.76 percent from 21.98 to 20.49 levels. Cool down in Volatility from higher zones has given support for a decent bounce back move and now it has to hold below 19 zones to continue the bulls grip in the market, It saw a comeback of the bulls in the market with improvement in the advance-decline ratio and closed the day with gains of 135 points. Nifty formed a volatile on a daily scale and making higher lows from the last two sessions.
Markets have managed to settle down after a massive drop of 600 points on Monday. In last two days, we have already recouped more than 70% of the losses, which is remarkable ahead of the concluding week of the current calendar year. As we had mentioned in the previous commentary, the Monday's fall was a corrective move within the strong Bull Run and hence, we did not have any follow through to this. But still it would be very difficult to say whether the correction is completed and we are heading for new highs,
The market will be heavily dependent on FII purchases. Consistent buying of FIIs is also continuing in the month of December after November. FIIs have so far bought an estimated net worth of Rs 40,099.68 crore in December, while DIIs have sold an estimated net worth of Rs 31,153.49 crore.
As far as Nifty future levels are concerned, 13636 - 13676 continues to be a key resistance zone; whereas on the lower side, crucial support base shifts at 13533 - 13474 now. A move below this support zone would result in an extended correction.
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Ø INDEX MOVEMENT - 24.12.2020
Nifty Future has resistance at 13636 – 13660 Point; above which other resistance levels are at 13676 – 13707 Point with highly Volatile Trend,
Nifty Future has Downside support levels are at 13575 – 13533 Point; below13533 Point, other support levels are at 13505 – 13474 Point.
I am positive for the next bullish trend only above @ 13676 Point but be with the trend. Let the market decide further moves.
As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario...!!!
Regarding Long term positions, it is preferable to remain cautious now...!!
If Nifty Future crosses @ 13676 Point, again then the upper side target is quite high and it may touch @ 13707 Point in the short term...!!!
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
Bank Nifty Future has resistance at 30088 – 30188 Point; above which other resistance levels are at 30272 – 30303 Point with highly Volatile Trend,
Bank Nifty Future has Downside support levels are at 29888 – 29808 Point; below29676 Point, other support levels are at 29606 – 29535 Point.
I am positive for the next bullish trend only above @ 30303 Point but be with the trend. Let the market decide further moves.
As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario.
Regarding Long term positions, it is preferable to remain cautious now.
If Bank Nifty Future crosses @ 30303 Point, again then the upper side target is quite high and it may touch @ 30373 Point in the short term
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
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