Market Update
Harsh Patel
Founder
The Indian market turns range bound as we enter into 2nd half of December anomaly and holiday season, BoJ rate decision to remain in focus this week.
Nifty Daily Chart
Support levels: 26000, 25900 Resistance levels: 26100
Nifty opens to 25950 level today, after Monday's rebound from opening low of 25900 to 26030, this proves our analysis of range bound market, technical setup remains same.
Hourly chart showing Double Bottom above 25950, while on the daily charts re-testing level of 26050-26090 'Rising Channel Breakdown', making market susceptible to fall unless 26100 is breached on higher side.
The market has entered into December anomaly, suggesting lower volume and increase in sideways activity in the market, giving lesser opportunities to Intraday traders in index.
On the downside 25900 is key technical support and has short build up in puts, below same the down move may resume for the theoretical target of 25300-25000, while on the higher side above 26100 we may see an attempt for a new life time high.
BOJ is expected to hike 25 Bps on Friday, guidance on further hikes is crucial to watch, it may result into increasing selling pressure form FII/FPI as carry trade unwinds and equity markets sees flight of capital, which is also evident with rupee sliding, USDINR made new low of 91.08 as predicted.
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