NIFTY ON 23-12-2022
The Index didn’t hesitate to chase the negative sentiments arose due to the current situation of China and fell unidirectionally to retest 17800 during Intraday.
It was discussed in the previous post that the Index may fall till 17800-500 in upcoming sessions as there is no favourable news for the Bulls.
All the Sectoral Indices closed in Red. PSU BANK and METAL remained the greatest losers with loss of 6.06% and 4.99% respectively.
Index closed at 17806.80 with a loss of 1.77% making a long Bearish candle on daily chart.
Technical View : (Daily Chart)
NIFTY has made a long Bearish candle which is indicating the further downside in upcoming trading sessions.
NIFTY is moving below EMA 13, 21and 34 and EMA 34< EMA13<EMA21 which is signalling that Index is on the verge of changing its current positive trend and moving towards the next support level of 17500.
RSI is near 30 level which means that technically Index is near the oversold zone and a pull-back may be possible towards the first resistance level of 18000.
Support and Resistance : Daily Chart
17726-17662 will work as the first support level for NIFTY.
On the upper side NIFTY will face resistance in the range of 17844-17916. Above this 18000 will hold strong resistance for NIFTY.
View for Traders:
In the previous posts we have discussed that 17800-900 is congestion zone which has acted as the axis of consolidation. 17800 holds multiple support levels and hence Index will put all its strength to defend it.
Breaching 17800 will not be an easy task and hence, it may be expected that Index will take support at this level and a pull back rally may be observed on 26-12-2022.
Further, on the options front the Highest OI on Put side is at 17800 ( NIFTY EXPIRY 29.12.2022) which holds 4161450 Contracts and hence will hold strong support for NIFTY.
17900 will play crucial role as it holds 3018250 OI on Call side and 3186400 OI on Put side.
The highest OI on call side ( NIFTY EXPIRY 29.12.2022) is at 18000 which holds 9384550 Contracts and hold strong resistance.
So the trading range for the coming week seems to be 17750-18050.
Global cues are not favourable as the rising cases in of COVID in China has brough numerous ill news during weekend.
Let’s have a glance at the News regarding China which will enable the readers to understand the current situation of Chinese economy:
1. China’s Business confidence Index is at 10 years low
2. The Oxygen tanks are empty in China
3. China faces protests over Paracetamol shortages
4. GDP growth of China at 2.8% which is lowest in 50 years
It is no secret that China is the factory of the world and if the factory is slowed down then the world can’t remain untouched and so the financial markets.
So, traders should remain cautious while taking any positional trades.
Now, let’s come to the final question what to do on 26.12.2022.
Buy Nifty in the range of 17775-825 for target of 17925-975. SL may be kept below 17750 on closing basis.
Sell Nifty in the range of 17950-18000 for target of 17850-825. SL may be kept above 18040 on closing basis.
The Index didn’t hesitate to chase the negative sentiments arose due to the current situation of China and fell unidirectionally to retest 17800 during Intraday.
It was discussed in the previous post that the Index may fall till 17800-500 in upcoming sessions as there is no favourable news for the Bulls.
All the Sectoral Indices closed in Red. PSU BANK and METAL remained the greatest losers with loss of 6.06% and 4.99% respectively.
Index closed at 17806.80 with a loss of 1.77% making a long Bearish candle on daily chart.
Technical View : (Daily Chart)
NIFTY has made a long Bearish candle which is indicating the further downside in upcoming trading sessions.
NIFTY is moving below EMA 13, 21and 34 and EMA 34< EMA13<EMA21 which is signalling that Index is on the verge of changing its current positive trend and moving towards the next support level of 17500.
RSI is near 30 level which means that technically Index is near the oversold zone and a pull-back may be possible towards the first resistance level of 18000.
Support and Resistance : Daily Chart
17726-17662 will work as the first support level for NIFTY.
On the upper side NIFTY will face resistance in the range of 17844-17916. Above this 18000 will hold strong resistance for NIFTY.
View for Traders:
In the previous posts we have discussed that 17800-900 is congestion zone which has acted as the axis of consolidation. 17800 holds multiple support levels and hence Index will put all its strength to defend it.
Breaching 17800 will not be an easy task and hence, it may be expected that Index will take support at this level and a pull back rally may be observed on 26-12-2022.
Further, on the options front the Highest OI on Put side is at 17800 ( NIFTY EXPIRY 29.12.2022) which holds 4161450 Contracts and hence will hold strong support for NIFTY.
17900 will play crucial role as it holds 3018250 OI on Call side and 3186400 OI on Put side.
The highest OI on call side ( NIFTY EXPIRY 29.12.2022) is at 18000 which holds 9384550 Contracts and hold strong resistance.
So the trading range for the coming week seems to be 17750-18050.
Global cues are not favourable as the rising cases in of COVID in China has brough numerous ill news during weekend.
Let’s have a glance at the News regarding China which will enable the readers to understand the current situation of Chinese economy:
1. China’s Business confidence Index is at 10 years low
2. The Oxygen tanks are empty in China
3. China faces protests over Paracetamol shortages
4. GDP growth of China at 2.8% which is lowest in 50 years
It is no secret that China is the factory of the world and if the factory is slowed down then the world can’t remain untouched and so the financial markets.
So, traders should remain cautious while taking any positional trades.
Now, let’s come to the final question what to do on 26.12.2022.
Buy Nifty in the range of 17775-825 for target of 17925-975. SL may be kept below 17750 on closing basis.
Sell Nifty in the range of 17950-18000 for target of 17850-825. SL may be kept above 18040 on closing basis.