Market Outlook

Support comes in at the 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 22769, 23111, 23400, 23667, 23894, 24200, 24492, 24792, 25446, 25100, 25800, 26400.

The Nifty has bounced back from a deeply oversold situation and has just about covered up the first bearish gap on the daily chart to barely close above the 22526 level indicating short term positives. Maximum call open interest comes in at 23100 followed by 22800 while maximum put open interest comes in at 22300 followed by 22000 indicating a rather clear 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 minor increase in open interest during the week to end at 01.81 cr (rounded off) and has seen a down up tick of nearly 00.29% (rounded off) on the last trading session of the week; the Bank Nifty has seen some solid open interest being decreased during the week to end at 28.43 lakh (rounded off) compared to the last week; has actually seen open interest (00.25%) 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 13.00 level (in terms of closing) except that it ended at 13.47 (higher from an intra week low of 13.10) which has resulted in the Nifty generally being better during the week. The Nifty has ended positive for three trading sessions in a row indicating near term progress and while sectors have also recovered in line but the medium picture also needs to turn for a sustainable bounce to unfold. A close above 22769 is a must while the 22000 level needs to hold. Support comes in at the 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 22769, 23111, 23400, 23667, 23894, 24200, 24492, 24792, 25446, 25100, 25800, 26400.