Hello dear friend, in this Indian Stock Market Prediction for Tomorrow blog post, we will try to analyse trends based on technical charts and Open Interest data. We also try to find important support and resistance in Nifty and BankNifty.
So read the post till the end to know what the trading plan could be today based on the trend and levels.
Indian Stock Market Prediction for Tomorrow i.e. December 20, 2023
After a good upside rally in the last week, the Indian Stock Market opened flat and trading in a range this week. Seems like the Indian Stock Market is gaining some strength for the next upside rally.
Although the Indian stock market is trading flat few sectors like PSU Banks & IT have shown a significant buying interest which is a good sign of bulls.
Now If you look at the overall sentiments, the short-term trend looks positive and there is no sign of weakness. So I suggest we should for a clear indication of a breakout or a breakdown to initiate a fresh trade.
Indian Stock Market Prediction Based on the chart
- After a huge upside rally, We can see that Nifty is facing resistance near 21500 which is an important resistance level based on the Fibonacci Extension tool. Now if Nifty manage to give a sustainable breakout from this level then we may see some more upside levels in the coming week. The next target would be 22210 for the near term.
- BankNifty has also supported Nifty in the last 2 trading sessions and facing resistance near 48094. Now a sustainable breakout is required for the next upside target of 49735.
Now after looking at chart, we can say that short term trend looks bullish in Nifty and BankNifty and there is no sign of weakness. Even today also we have seen long buildup in both the indices. So trade accordingly.
Based on the short-term trends, we can create a mild bullish strategy in Nifty and BankNifty.
Keep one thing in mind while creating your option strategies both the indices trading near support or resistance levels. So keep yourself prepared for some consolidation or reversal. So choose your strategy wisely.
Indian Stock Market Prediction based on Open Interest data
- For Nifty: 21300 is acting as immediate support with a PCR at 5.15 and resistance is at 21500 with a PCR at 0.36. Max pain is at 21400.
- For BankNifty: 47700 is acting as immediate support with PCR at 3.04 and 48000 as immediate resistance with PCR at 0.39. Max pain is at 47800.
- Expiry Range:
- For Nifty = 21300 - 21500.
- For BankNifty = 47700 - 48000 ( based on current OI data. Keep following change in OI for further levels)
The intraday trend was “Bearish” in Nifty and "Neutral" in BankNifty today. (based on our trend-following sheet and setup)
Important Levels and Option Strategies for December 20, 2023
Tomorrow is the weekly expiry in BankNifty and fluctuations will be high. So you have to trade cautiously if you are new to the options market.
Because of the trend, we should create bullish strategies in Nifty and BankNifty but because of expiry, I suggest we should trade limited risk strategies only:
- For Banknifty, We can create an iron butterfly while keeping 47800 as the max pain.
- We can sell 47800 CE and PE and we can buy 48000 CE and 47600 PE, based on the current data.
One thing you should keep in mind is that the above trades are based on the current data and need some adjustments if data changes. So proper knowledge and understanding are required before taking entry into any position.
If you don't know how to create and manage these option strategies, Option Strategies: A Mentorship Program would be the best online course for option trading.
I have also shared my Intraday strategies and trend-following trading setup in a small course. You can click on the below link to get access to the course.
DISCLAIMER: We are not SEBI research analysts. Views and trading strategies are posted in this blog post, only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline for interpreting specified analysis methods. This information should only be used by investors and traders aware of the risk inherent in securities trading.