Market Outlook

Support comes in at the 22974, 22769, 22526 22300, 22125, 21834, 21500, 21020, 20850, 20500, 20222, 19992, 19875, 19667, 19524, 19250, 18888, 18600, 18442, 18200, 18095, 17948, 17792, 17613, 17430, 17226, 17055, 16900, 16700, 16359, 16203 while resistance comes in at 23111, 23400, 23667, 23894, 24200, 24492, 24792, 25446, 25100, 25800, 26400.

The Nifty has not only breached and closed below the 23400 level but has even gone ahead and done the same with the 23111 level indicating short term weakness and the possibility of a further decline. Maximum call open interest comes in at 23200 followed by 23000 while maximum put open interest comes in at 22000 followed by 22500 indicating a slightly smaller and lower trading range (not very surprising considering the fact that we are in the second week of the current series) compared to the last week but the situation remains fluid with movements expected on either side. Nifty has seen some solid increase in open interest during the week to end at 01.27 cr (rounded off) and has seen an up tick of nearly 04.77% (rounded off) on the last trading session of the week; the Bank Nifty has seen some open interest being decreased during the week to end at 22.84 lakh (rounded off) compared to the last week; has actually seen open interest (02.28%) being lower on the last trading session of the week. The Vix has spent almost the entire week in a rangebound movement (with an upward bias) above the 13.00 level (in terms of closing) except that it ended at 13.76 (higher from an intra week low of 12.72) which has surprisingly resulted in the Nifty generally negative during the week. The Nifty has had a 1800 point rise followed by a 1000 point decline exemplifying heightened volatility without any corresponding movement in Vix mainly due to globally uncertainty. A holiday curtailed week with the Rbi Credit Policy is only going to make trading a veritable minefield. A wait and watch policy seems to be the best option. Support comes in at the 22974, 22769, 22526 22300, 22125, 21834, 21500, 21020, 20850, 20500, 20222, 19992, 19875, 19667, 19524, 19250, 18888, 18600, 18442, 18200, 18095, 17948, 17792, 17613, 17430, 17226, 17055, 16900, 16700, 16359, 16203 while resistance comes in at 23111, 23400, 23667, 23894, 24200, 24492, 24792, 25446, 25100, 25800, 26400.