Market Outlook for Next Week 21-12-2020 to 24-12-2020

Nifty, Bank Nifty, Option Chain


Hourly Chart of Nifty:-

On a Hourly chart there was Negative Divergence between price and RSI last week. Price was moving higher high and higher low price formation while RSI was moving lower high and lower low price formation. However, in current week there is slight up move seen in RSI along with Price also, and now Nifty formed resistance at 13775-13800. Accordingly in coming week if Nifty starts trading above 13800 then we may see upside rally towards 13900-13950. And if not then we may see nifty towards 13600. 

Next Week Trading Range: 13950-13600.

Option Chain of Nifty for Expiry on 24-12-2020:-

As per Option chain also there is maximum longs in range of 13500-13600 and therefore it will be difficult for Nifty to go below 13600-13500 and from 13800 to 14000 there is maximum shorts and difficult to cross above 14000. And therefore the bigger range of Nifty as per Option chain can be 13500-14000.

Bank Nifty

Hourly Chart of Bank Nifty:-

Last week also i have mentioned regarding Negative Divergence between Price and RSI, which is still valid. As you can see in chart above RSI is forming lower low and lower high while price is moving higher high and higher low price formation. Now, break above 30850 and below 30350 will decide coming trend. And between 30350 to 30850 considered as range bound. 

Next Week Trading Range: 31000-30300

Option Chain Analysis of Bank Nifty for Expiry on 24-12-2020:-

As per Option chain of Bank Nifty, 30500 is the make or break level because at 30500 strike price there is fighting as you can see in option chain. As per chart there is breakout above 30850 and in that case we may see fast movement towards 31000 due to short covering. Support is placed at 30400-30300 as per chart and in case that breached then we may see level of 30000. Overall range of Bank Nifty as per Option chain can be 30000-31000.

Thank You..

Happy Trading.
"Learn & Earn"...!!

(Disclaimers:- Above is my personal view on market for Next Week. It is neither Paid service nor tip. Just for educational purpose only. Take your own decision before any trade).


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