As long as Nifty holds 18500, hope of bullishness excits.... As expected, profit booking seen at higher level. Today market affected Because of two reasons, 1) defeat of BJP @ MCD & 2) rise in repo rate by RBI... It was actually expected. RBI projected lower GDP rate for FY 23. Nifty opened & remained under pressure till end made low of 18528...& formed a bearish candle on daily chart. Hope lives till it holds 18500 & may bounce to 18700-800 again.
The recent developments construe a motion of tentativeness among the market participants as the Nifty plunged to test the critical support zone. 18500-300 is a very crucial zone to inch the market... Fiis activity and some global cues affect the moral of the market. A decisive closure above 18,700 could only bring some cheer back into the market, and then we may expect the northward journey to continue more. After 20 th instant, Fiis activities would be slow down coz of Christmas.
On the options front, the maximum Call open interest was at 19,000 strike followed by 20,000 strike, while the maximum Put open interest was seen at 18,000 strike then 18,500. 18500 should not be broken. while minor Put writing was seen at 18,500 then 18,600 strike..
Bank nifty also formed a bearish candle on daily chart with longer shadow, indicating either side movements. It has to hold 43000 mark to move up further.
For traders, as long as the index is trading below 18,650, the correction wave is likely to continue. Below the same, the index could slide to 18,500-18,425. On the other hand, above 18,650, it could move to 18,700-18,800. Investors are booking profits.... Inflation is not in line with RBI expectations and further rise may come if situation doesn't change... This is a important issue for the Indian market.
Yes, tommorw gujarat election results to be published, BJP definitely maintain it's government but voting percentage will be important to know.
Mostly December series has given a good returns in past, looking to that market may remained bullish if nothing goes wrong economically.
Signing off for the day 💐