Market Outlook 16th December

Yesterday we saw a very big correction in our market and all Index closed down.

The main culprit was Bank Nifty which was under pressure on the fears of rate hike to suck excessive liquidity in the market to curb inflation.

Nifty found important support near lower level of 5020 and we expect Nifty to find support in this zone even today.

Very strong support for Nifty exist at 4984 and it should be maintained in the current scenario.

But if more bad news flow continues then Nifty may drift even lower.

In case of more weakness Nifty must find support at 4895 level.

As we saw a big correction some relief rally is possible very soon.

Although Us market closed down but most Asian markets opened up.

SGX Nifty is also trading slightly up.

For Nifty to regain upward momentum it must cross 5066 level and must close above it.

As long as we are below this mark nothing important is possible in terms of upside.

Any trader holding short position should maintain 5066 as SL if short is still to be carried forward.

Best strategy is to wait for clarity and then take some decision.

Some buying may be done at lower levels in quality mid-caps and large cap stocks.

Nifty Levels for Today
TREND DECIDING LEVEL (Pivot Point)
5054

Support
5017 - 5003 - 4984

Resistance
5071 - 5089 - 5110