After gaining nearly 1,600 points over the last two F&O series, the Nifty 50 index is poised to end the December F&O series on a subdued note. As of closing on Tuesday, the index had declined 380 points during the December series.

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Before the December series, the Nifty 50 had gained in four out of the previous five F&O series. The index, before registering gains on Monday and Tuesday was down 5 percent from its record high of 18,888 on December 1. The last instance of the index declining 5 percent in the month of December was back in 1994.

The last few sessions of the December series has seen the Nifty 50 slip below the 18,000 mark, fall below all key daily moving averages and also stage a recovery from the lows. Chandan Taparia of Motilal Oswal Financial Services believes that until the Nifty 50 index does not hold its 50-day exponential moving average, it will continue to remain in a range of 17,777 - 18,350 on the higher side.

However, he expressed confidence that the index will end the December F&O series above the mark of 18,000.

The Nifty Bank index managed to hold the immediate support zone of 42,400 but faces an upside hurdle at 43,000, according to Kunal Shah of LKP Securities. 43,000 is where there is highest Open Interest addition seen on the call side. He expects the index to continue trading in a broad range of 42,000 - 43,000.

Chandan Taparia also expects the Nifty Bank index to hold the range of 42,000 to 42,222 and it may face a hurdle towards the 43,250 mark. On an immediate basis, he sees 42,400 as a support level for the Nifty Bank.

LKP Securities' Shah also expects the Nifty Bank expiry to be below levels of 43,000. He further added that in case the Nifty Bank breaches the 43,000 mark on the upside, it may trigger a sharp short covering move towards 44,000 levels.

Shah concurs with Taparia on the Nifty 50 expiry taking place above the mark of 18,000.

Jai Bala of cashthechaos.com suggests that any rally below levels of 18,345, which is a level of resistance for the Nifty 50 would be very bearish. He cited the monthly charts rejection from record high levels as a sign of weakness. Near term support for the index, according to Bala, stands at 17,500.

Ahead of the final two trading sessions of 2022, the Nifty 50 index is up 2.8 percent for the year.

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First Published:Dec 28, 2022 10:48 AM IST