Market Outlook 20th Dec 2024

The Nifty Index opened the gap down by 320 points and slipped to 23,870 zones in the first half of the session which was followed by some recovery and consolidation. It formed a small-bodied bullish candle on daily frame with longer upper shadow and has been making lower lows from the last four sessions.

Now till it holds below 24,000 zones weakness could be seen towards 23,850 then 23,500 zones whereas hurdles can be seen at 24,150 and 24,350 zones.

On option front, Maximum Call OI is at 25,000 then 26,000 strike while Maximum Put OI is at 23,000 then 24,000 strike. Call writing is seen at 24,000 then 24,200 strike while Put writing is seen at 24000 then 23,500 strike. Option data suggests a broader trading range in between 23,400 to 24,400 zones while an immediate range between 23,700 to 24,200 levels.

The S&P BSE Sensex Index began the trading session on a negative note and made an attempt to recover, however, it faced resistance at the 79,500 level. Sensex traded sideways for the rest of the day and index eventually dropped by around 950 points. Now till it holds below 79,500 zones, weakness could be seen towards 78,900 then 78,700 zones whereas hurdles are placed at 79,500 then 79700 zones. 

The Bank Nifty Index opened gap down by more than 700 points due to weakness in global cues and remained under bear’s grip throughout the session. It formed a small bodied candle on a daily scale but the structure of lower lows is intact from the last three sessions and ended with losses of around 560 points.

The index has seen a corrective move of almost 2,000 points in the last few sessions and closed below its 50 DEMA. Now till it holds below 51,750 zones some weakness could be seen towards 51250 then 50,750 levels while on the upside hurdle is seen at 51750 then 52000 zones.

Nifty future closed negative with losses of 0.97 per cent at 24,021 levels. Positive setup seen in IPCA Labs, Abbott India, Dr. Reddy, Muthoot Finance, Torrent Pharma, OFSS, Coforge, Persistent system, Laurus Labs, Polycab, Apollo Hospital and Indian Hotel while weakness in Cummins India, PEL, Adani Green, Ashok Leyland, NALCO, Bajaj Finserv, UPL, Tata Motors, Escorts, Bharat Forge, Asian Paints, Berger Paints and Nestle India.

MUTHOOTFIN - TECHNICAL CALL OF THE DAY

A pole and flag pattern has appeared on the daily chart and it has given highest daily close ever which has bullish implications.

The ADX line is in a steep uptrend confirming the strength of the up move.

Buy MUTHOOTFIN CMP 2136 SL 2080 TGT 2250

The S&P BSE Sensex Index began the trading session on a negative note and made an attempt to recover, however, it faced resistance at the 79,500 level.

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