Tuesday, December 22, 2020

Stock Market Tomorrow | Nifty & BankNifty Outlook for 23 Dec 20


 Nifty and BankNifty, Stock Market Outlook for 23 Dec 20

Stock Market Today 

Indian equity benchmarks made smart recovery on Tuesday, after witnessing massacre in the previous session, led by gains in information technology heavyweights like HCL Technologies, Tech Mahindra and Infosys. Soon after making a positive start, key gauges entered into red terrain as traders turned pessimistic amid reports of new strains of coronavirus in the UK. Rising corona virus cases too dampened sentiments with increase in Covid-19 cases, India's caseload now stands at 10,075,422 and the country's death toll has mounted to 146,145. Cautiousness also crept in on report that Maharashtra government imposed a curfew from 11 pm to 6 am in all municipal corporations from December 22 till January 5, 2021.

Markets took U-turn in second half of the trade to end near intraday highs, as traders opted to buy beaten down but fundamentally strong stocks. Traders took encouragement with CRISIL’s report that corporate profits rose 15 per cent to touch an all-time high in the September quarter as margins widened on softer input costs and better utilistaion levels. 

Some support also came as economic think-tank NCAER, in its mid-year review of the Indian economy, has said that India's Gross Domestic Product (GDP) growth is likely to turn positive at 0.1 per cent in the October-December (Q3) quarter, after witnessing a contraction in the first half of the current financial year. It also forecast 2 per cent growth in the fourth quarter (January-March 2021). It noted that the overall contraction in the current fiscal is likely to be contained at 7.3 per cent.

 Adding to the optimism, Ministry of Finance has released the 8th weekly installment of Rs 6,000 crore to the states. Out of this, an amount of Rs 5,516.60 crore has been released to 23 states and an amount of Rs 483.40 crore has been released to the 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry) who are members of the GST Council.

Nifty Outlook

Friends as discussed yesterday that from today a recovery will be seen in the Nifty and Nifty exactly behaves on our expectation ans a sharp recovery seen today in the second half . 

But in todays recovery BankNifty did not participated showing a negative sign and therefore strength of the recovery may be weaker in upcoming trading sessions. And if Banknifty not participate further then one thing is clear that after this recovery a strong selling pressure will be seen in the market .

So it is still advisable that we should close our positions in which we have short term view during this recovery of market . Do not make fresh long position until our Nifty closes above the levels of 13800 .

Friends this weekly expiry may remain  weak and we can see again a  fall in Nifty on expiry day if  tomorrow Nifty give a negative closing. If Nifty closes strong then avoid, do not take short position for expiry. So if tomorrow if we closes in red then not miss the chance of shorting and taking PE option in Nifty for weekly expiry.

For tomorrow Nifty can test 13548 /13574  in upside and in downside 13354 will be important support for tomorrow .

BankNifty Outlook

Strategy and planning should be the same as we discussed in Nifty outlook section.

Now for tomorrow Banknifty has an important resistance at 29986 and important support at 29311

Thanks for your Precious Time.

Finvest Online
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Disclaimer- The information on this blog are based on my personal opinion and experience, it should not be considered professional financial investment advice and in no way it should be considered as a tip. We does not take any compensation of any kind whatsoever from any reader, user and company that are mention on this website. We are not SEBI registered financial advisor or analyst.

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