As per our last weekly report, we already cautioned traders and investors about the volatility in the markets. Last week Sensex, Nifty and Bank Nifty gained almost 5% from the days low on Tuesday i.e 11th Dec once the clear picture of election outcome was declared. Global cues were in favor of the Markets, crude oil price and rupee also supported the market to gain Nifty 500 points from the low during the week. Mid-caps and small caps also participated in the rally in the latter half of the week. The news of RBI governors resignation was also factored on Tuesday morning fall.
After the short covering on Tuesday, the second half of the week got positive momentum on the release of November CPI data which fell to 2.33 percent and 8.1 percent spike in IIP data in October. With the announcement of Saktikanta Das as a 25th Governor of Reserve Bank of India, some positive momentum was seen in NBFC and Banking sectors. There is an expectation of an ease in liquidity and relaxation in prompt correction action (PCA) framework.
Events of Stock Market:
In the coming week, the main event is US FED meeting which is going to start on 18th Dec and outcome will be known on 20th Dec. It is expected that FED is not going to hike rate before Christmas but the commentary of FED chairman Jerome Powell's rate hike projection can increase the volatility in the markets. Other factors which can influence market are Crude Oil Price, Rupee and FII's inflow. Any negative news on the above factors can increase the volatility and start correction in Indian Market.
Nifty and Bank Nifty Technical Updates for the week
Nifty Weekly Outlook
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| Nifty Technical Chart 17th Dec-21st Dec |
Primary Trend: Up - Sideways OHLC-(10582.25/10882.20/10352.10/10820.30)
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Range Bound Trend: All up moves initiates Profit Booking (Sale) @ 10985 whereas all down moves Initiate Short Covering (Buy) @ 10658
If Nifty moves above 10885 then you should Buy with 1st Target of 11085 during the day or at any point during the week by Trailing the Stop Loss from 10650-10780-10850-10980-11100-11180 FOR the Target of 11185-11290-11415
If Nifty moves below 10755 then you should Sell with 1st Target of 10555 during the day or at any point during the week by Trailing the Stop Loss from 10990-10875-10790-10675-10550-10475 FOR the Target of 10460-10355-10230
Bank Nifty Weekly Outlook
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| Bank Nifty Technical Chart 17th Dec to 21st Dec |
Primary Trend: Up - Sideways OHLC-(26251.25/27029.00/25706.40/26879.85)
Range Bound Trend: All up moves initiates Profit Booking (Sale) @ 27270, whereas all down moves initiate Short Covering (Buy) @ 26455
If Bank Nifty moves above 27020 then you should Buy with 1st Target of 27525 during the day or any point during the week by Trailing the Stop Loss from 26450-26750-26950-27250-27575-27760 FOR the Target of 27775-28028-28340
If Bank Nifty moves below 26700 then you should Sell with 1st Target of 26200 during the day or any point during the week by Trailing the Stop Loss from 27275-26975-26775-26465-26150-25950 FOR the Target of 25950-25695-25385
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Conclusion:
Nifty and Bank Nifty both are up trends to sideways any correction will be a buying opportunity unless it breaks the level mentioned in the chart. The main event in the week is US FED meeting and the investor and traders need to closely monitor the crude price, rupee and global market for taking any trade.
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Happy Investing!
Finogyan Team
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