F&O Talk| Nifty trading trapped in 23,000-25,000 range with bearish long-term outlook: Rahul Ghose of Hedged.in
US dollar, high valuations, and investors gravitating toward a multi-asset strategy.
The auto sector outperformed other indices, buoyed by strong December sales that defied typically subdued demand. Meanwhile, mid and small caps showed a modest recovery, while large caps trailed behind.
With the current market scenario, analyst Rahul Ghose, Founder of Hedged.in interacted with ET Markets regarding the outlook on Nifty and Bank Nifty and an index strategy for the upcoming week. Following are the edited excerpts from his chat:
What is your view on Nifty? The index has been witnessing a lot of volatility and certainly lacks a concrete direction at this time. What are your thoughts?
Despite all the volatility & wild swings, Nifty has been trading sideways on both daily and weekly time frame charts. In the short term, 23,200-23,000 is a strong support level and 25,000 is a strong resistance. One can say that we are kind of trading in a rectangular/box range and a decisive move could only come once this range breaks on either side. These levels are also supported by strong OI built-ups. The important thing to note is, that the higher time frames like monthly and quarterly are not looking very good. We have some bearish candlestick patterns on quarterly as well as monthly charts of Nifty. The probability of this range breaking on the downside is relatively higher. Looking at 2025, I don’t expect Nifty to cross 27,500 in 2025, which is a 10% upside.
Bank Nifty doesn’t seem to provide a push to the market either trading
