What should be the strategy after the market decline?

On December 17, a big fall was recorded in Nifty and Bank Nifty. The main reason for this correction was the caution in the market regarding the policy meeting of the Federal Reserve to be held on December 18. Experts believe that if Nifty maintains the level of 24,200, then it is possible to rise towards 24,500-24,700. At the same time, if it slips below this level, then the level of 24,000 will prove to be important.

The level of 52,300 will act as support for Bank Nifty. If it falls below this level, selling pressure may increase. At the same time, if it goes above 53,150, buying may increase again.

Nifty Outlook and Trading Strategy

Analysis by Dhupesh Dhameja of Samco Securities

Dhupesh Dhameja says that the bearish trend in Nifty continues. Nifty is failing to hold higher levels and every uptrend ends in selling pressure. The index has fallen below the important support level of 24,500 and closed below the 20-day exponential moving average (DEMA).

• Resistance Level: 24,500, 24,800, 25,000
• Support levels: 24,350, 24,000, 23,900

Bear Call Spread Strategy:

• Buy 24,400 strike calls (at Rs 92.10)
• Sell ​​24,100 strike calls (at Rs 280.85)
• Stop-loss: Maximum loss of Rs 2,781 on MTM
• Target: Book maximum profit of Rs 4,719 or cross MTM Rs 3,000

Suggested by Ashish Kyal of Waves Strategy Advisors

Ashish Kyal says that for Nifty there is resistance at 24,880 and support at 24,180.

• Trading Strategy:
  • Create short position below 24,260
  • Stop-loss: 24,320
  • Target: 24,180 and 24,100

Trade Delta’s Preeti Chhabra’s Perspective

According to Preeti Chhabra, there is resistance for Nifty at 24,530 and 24,850 and support at 24,330.

• Trading Strategy:
  • Sell ​​Nifty Futures below 24,330
  • Stop-loss: 24,370
  • Target: 24,050

Bank Nifty Outlook and Trading Strategy

Analysis by Dhupesh Dhameja of Samco Securities

According to Dhupesh Dhameja, for Bank Nifty there is resistance at 53,000, 53,500, 53,700 and support at 52,700, 52,300, 52,000.

• Trading Strategy:
  • Sell ​​December futures below 52,850-52,800
  • Stop-loss: 53,050
  • Target: 52,300-52,250

Suggested by Ashish Kyal of Waves Strategy Advisors

Ashish Kyal says that for Bank Nifty there is registration at 53,400 and support at 51,800.

• Trading Strategy:
  • Create short position below 52,580
  • Stop-loss: 52,980
  • Target: 52,180 and 51,800

Trade Delta’s Preeti Chhabra’s Perspective

According to Preeti Chhabra, for Bank Nifty there is resistance at 53,738 and 53,888 and support at 52,700 and 52,300.

• Trading Strategy:
  • Sell ​​Bank Nifty around 53,500
  • Stop-loss: 53,738
  • Target: 52,700 and 52,300