Market Outlook

Support comes in at the 24150, 23894, 23667, 23263, 23111, 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 24344, 24588, 24792, 25002, 25212, 25446, 25669, 25800, 25908, 26104, 26277, 26500.

The Nifty has reversed direction with alacrity and has finally broken down from its 28 trading session trading range between 23800 on the downside and 24588 on the upside by closing at 23767.45 on the last trading session of the week. Maximum call open interest comes in at 24000 followed by 24200 while maximum put open interest comes in at 23500 followed by 23700 indicating a clearly lower trading range compared to the last week (not very surprising considering the fact that we are in the last week of the current series) but the situation remains fluid with movements expected on either side. Nifty has seen some notable decrease in open interest during the week to end at 01.03 cr (rounded off) and has seen a down tick of nearly 13.06% (rounded off) on the last trading session of the week; the Bank Nifty has seen open interest being decreased during the week to end at 13.97 lakh (rounded off) compared to the last week; has actually seen open interest (22.63%) being lower on the last trading session of the week. The Vix has spent almost the entire week in a rangebound movement (with a mixed bias) above the 12.50 level (in terms of closing) except that it ended at 14.03 (higher from an intra week low of 11.72) which has resulted in the Nifty generally being weaker during the week. The Nifty has breached 23800 on the downside indicating some weakness and unless there is a recovery and a close above the aforesaid level, weakness cannot be ruled out. A monthly expiry week could lead to some volatility; it would be prudent to wait on the sidelines for a clearer picture to emerge. Support comes in at the 24150, 23894, 23667, 23263, 23111, 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 24344, 24588, 24792, 25002, 25212, 25446, 25669, 25800, 25908, 26104, 26277, 26500.