NIFTY ANALYSIS AND WEEKLY PICKS
NIFTY ON 16-12-2022
The dented sentiments by the Hawkish commentary of Fed Chairman saw no revival and the Index continued to lose on the last trading day of the week.
Opened gap down Index attempted to reclaim all the gains it lost during last trading sessions. However, amid weak global cues the Index broke all its important support levels and retested 18250 during intraday.
All the Indices closing in Red and consequently Index closed at 18269 with a loss of 0.79% making an Inverted Hammer candle on daily chart.
Technical View : (Daily Chart)
NIFTY has made an Inverted Hammer kind of Candle that ideally indicates the reversal of trend from current levels.
NIFTY is moving below EMA 13, 21, 34 and EMA 34< EMA21<EMA13 which is sending the mixed signals regarding the current trend.
RSI has breached the crucial 50 level which indicates that the Index has lost its strength and further weakness may be observed.
Support and Resistance : Daily Chart
18221-175 will work as the first support level for NIFTY and below this 18106 will hold strong support for NIFTY.
On the upper side NIFTY will face resistance in the range of 18350-18439. Above this 18500 will hold strong resistance for NIFTY.
Sectoral View: (Weekly Chart)
OIL&GAS looks strong while IT and AUTO may see positive reversal from current levels.
The negative reversal may be seen in BANK, PSU BANK and FMCG.
MEDIA , METAL and PHARMA are the sectors where weakness may be observed.
REALTY is still in the sideways trend.
View for Traders:
This has been an interesting week which offered immense learning opportunities to the practitioners.
It was mentioned in the last published blog that Index may take any side and great move may come at either of the sides and the commentary of Fed will cause this move.
We have witnessed the same and now stand with the same question “What is next”? Will Index recover from the current levels or it will show more weakness in upcoming trading sessions.
If we analyse the current global scenario then there is no such trigger which will push aur drag Index towards any unexpected levels.
Technically, Index is giving indications of reversal from current levels as it has made an Inverted Hammer kind of candle on both Weekly and Daily timeframe charts.
Analysing the Options-Chain, we find that there is strong support present at 18200 and 18100 as these hold Highest Open Interests on Put side. On the other hand , Bulls and Bears will fight for 18300 and 18350-400 will hold strong resistance as these hold the highest Open Interests on Call side.
This indicates that index is entering into the consolidation mode with the broader trading range of 18100-18400.
If the Index breaks 18400 and sustains then there are high chances that it will show 18500 and on the other hand if Index fails to defend 18150 then there are high chances that Index will retest 18040 ( Which was mentioned as Vital Level in previous posts).
So, based on these parameters one may expect a volatile session on Monday 19-12-2022 as trade will take place at both the sides.
So on Monday, it seems lucrative to Buy NIFTY in the range of 18175-200 for target of 18250-18300. SL may be kept below 18100 on closing basis.
Sellers must take their chances in the range of 18350-375 for target of 18250-200. SL may be kept above 18435 on closing basis.
WEEKLY PICKS
1. OIL INDIA LIMITED
Buy in the range of 211-213
Target 224
SL 205
Potential Upside 6.16%
2. HCL TECHNOLOGIES
Buy in the range of 1020-1025
Target 1090
SL : 1000
Potential Upside 6.86%
3. EPL LTD
Buy in the range of 195-196
Target 226
SL 185
Potential Upside 15.38%
4. STLTECH
Buy in the range of 175-180
Target 1 201 Target 2 223
SL 160
Potential Upside 14.85
5. TRIVENI ENGINEERING
Buy in the range of 278-280
Target 307
SL 262
Potential Upside 10.43%
The dented sentiments by the Hawkish commentary of Fed Chairman saw no revival and the Index continued to lose on the last trading day of the week.
Opened gap down Index attempted to reclaim all the gains it lost during last trading sessions. However, amid weak global cues the Index broke all its important support levels and retested 18250 during intraday.
All the Indices closing in Red and consequently Index closed at 18269 with a loss of 0.79% making an Inverted Hammer candle on daily chart.
Technical View : (Daily Chart)
NIFTY has made an Inverted Hammer kind of Candle that ideally indicates the reversal of trend from current levels.
NIFTY is moving below EMA 13, 21, 34 and EMA 34< EMA21<EMA13 which is sending the mixed signals regarding the current trend.
RSI has breached the crucial 50 level which indicates that the Index has lost its strength and further weakness may be observed.
Support and Resistance : Daily Chart
18221-175 will work as the first support level for NIFTY and below this 18106 will hold strong support for NIFTY.
On the upper side NIFTY will face resistance in the range of 18350-18439. Above this 18500 will hold strong resistance for NIFTY.
Sectoral View: (Weekly Chart)
OIL&GAS looks strong while IT and AUTO may see positive reversal from current levels.
The negative reversal may be seen in BANK, PSU BANK and FMCG.
MEDIA , METAL and PHARMA are the sectors where weakness may be observed.
REALTY is still in the sideways trend.
View for Traders:
This has been an interesting week which offered immense learning opportunities to the practitioners.
It was mentioned in the last published blog that Index may take any side and great move may come at either of the sides and the commentary of Fed will cause this move.
We have witnessed the same and now stand with the same question “What is next”? Will Index recover from the current levels or it will show more weakness in upcoming trading sessions.
If we analyse the current global scenario then there is no such trigger which will push aur drag Index towards any unexpected levels.
Technically, Index is giving indications of reversal from current levels as it has made an Inverted Hammer kind of candle on both Weekly and Daily timeframe charts.
Analysing the Options-Chain, we find that there is strong support present at 18200 and 18100 as these hold Highest Open Interests on Put side. On the other hand , Bulls and Bears will fight for 18300 and 18350-400 will hold strong resistance as these hold the highest Open Interests on Call side.
This indicates that index is entering into the consolidation mode with the broader trading range of 18100-18400.
If the Index breaks 18400 and sustains then there are high chances that it will show 18500 and on the other hand if Index fails to defend 18150 then there are high chances that Index will retest 18040 ( Which was mentioned as Vital Level in previous posts).
So, based on these parameters one may expect a volatile session on Monday 19-12-2022 as trade will take place at both the sides.
So on Monday, it seems lucrative to Buy NIFTY in the range of 18175-200 for target of 18250-18300. SL may be kept below 18100 on closing basis.
Sellers must take their chances in the range of 18350-375 for target of 18250-200. SL may be kept above 18435 on closing basis.
WEEKLY PICKS
1. OIL INDIA LIMITED
Buy in the range of 211-213
Target 224
SL 205
Potential Upside 6.16%
2. HCL TECHNOLOGIES
Buy in the range of 1020-1025
Target 1090
SL : 1000
Potential Upside 6.86%
3. EPL LTD
Buy in the range of 195-196
Target 226
SL 185
Potential Upside 15.38%
4. STLTECH
Buy in the range of 175-180
Target 1 201 Target 2 223
SL 160
Potential Upside 14.85
5. TRIVENI ENGINEERING
Buy in the range of 278-280
Target 307
SL 262
Potential Upside 10.43%
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