The Indian benchmark Indices Nifty and Sensex settled with almost 1% lower compared to last week's closing. The Bank Nifty also closed flat to negative last Friday compared to the previous week's closing. Last Monday Indian Stock Market opened with a positive note but profit booking comes after two days and dragged the market down. The announcement of hike in interest rate by FED chairman has weakened the global market and the downfall started. The 1.9 percent fall of Indian Indices on last Friday was also due to the news of partial US government shutdown.
The global cues are not favoring Indian market at present. Nasdaq confirms bear market, due to this Wall Street stocks are falling sharply since last two days. Though the falling crude price is positive for the Indian market but due to the global weakness it increased the volatility in the market. Indian VIX has jumped from 12 percent to 16 percent which is indicating an increase in volatility.
December Expiry events for Nifty and Bank Nifty:
The main event of the Indian Stock Market is December Expiry on 27th December 2018, the last expiry of the year. Though there is no major event in the domestic front global cues would dominate the market in the next week. The Indian government has slashed GST rate of 23 items today such as TV, movie tickets etc and 6 more items to cut soon from 28 percent to 18 percent and government may also likely announce some positive news on Banking and Financial sectors like PSU and NBFC's soon. Investors should update with the news and trade accordingly.Nifty and Bank Nifty technical Outlook
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| Nifty Technical Chart 24th to 28th Dec |
Nifty weekly Outlook
Primary Trend: Corrective - Sideways OHLC-(10855.15/11006.25/10755.00/10767.50)
Range Bound Trend: All up moves initiates Profit Booking (Sale) @ 10850 whereas all down moves initiate Short Covering (Buy) @ 10690
If Nifty moves above 10800 then you should Buy with 1st Target of 10895 during the day or any point during the week by Trailing the Stop Loss from 10675-10735-10775-10840-10900-10935
FOR the Target of 10950-10990-11050
If Nifty moves below 10740 then you should Sell with 1st Target of 10645 during the day or at any point during the week by Trailing the Stop Loss from 10875-10790-10755-10697-10650-1060 FOR the Target of 10592-10545-10485
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| Bank Nifty Technical Chart 24th to 28th Dec |
Bank Nifty Weekly Outlook
Primary Trend: Up - Sideways OHLC-(26988.80/27425.00/26888.60/26942.70)
Range Bound Trend: All up moves initiates Profit Booking (Sale) @ 27140, whereas all down moves initiate Short Covering (Buy) @ 26800
If Bank Nifty moves above 27040 then you should Buy with 1st Target of 27240 during the day or any point during the week by Trailing the Stop Loss from 26775-26925-27000-27125-27250-27325 FOR the Target of 27342-27445-27575
If Bank Nifty moves below 26700 then you should Sell with 1st Target of 26700 during the day or any point during the week by Trailing the Stop Loss from 27150-26950-26825-26685-26625 FOR the Target of 26600-26495-26375
Conclusion:
The Expiry week would be highly volatile, as per the technical chart, Nifty would be corrective to sideways whereas and Bank Nifty would be up to sideways. Traders should remain cautious about the global cues and should follow closely about development in the domestic front.
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Finogyan Team
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