Market Outlook

Support comes in at the 24227, 23894, 23667, 23400, 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 24492, 24792, 25002, 25212, 25446, 25639, 25800, 25908, 26033, 26277.

The Nifty has not only breached important support levels but has also covered up the bullish gap with consummate ease thereby underling the inherent weakness in the market which would also mean that further weakness is on the cards. Maximum call open interest comes in at 25000 followed by 24600 while maximum put open interest comes in at 24000 followed by 24400 indicating a more defined trading range compared to the last week (not very surprising considering the fact that we are in the first week of the current series) but the situation remains fluid with movements expected on either side. Nifty has seen some increase in open interest during the week to end at 01.66 cr (rounded off) and has seen an up tick of nearly 03.64% (rounded off) on the last trading session of the week; the Bank Nifty has seen some open interest being added during the week to end at 28.13 lakh (rounded off) compared to the last week; has actually seen open interest (02.19%) being higher 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 11.50 level (in terms of closing) except that it ended at 11.75 (higher from an intra week low of 10.93) which has resulted in the Nifty generally being weak during the week. The Nifty bounce back fizzled out on expected lines and the situation hasn’t changed much as the negative overhang remains omnipresent and any recovery is expected to get sold into (the 24400 option has a rather large open interest indicating support) while it would be prudent to wait on the sidelines for stability to come in; IT looks weak. Support comes in at the 24227, 23894, 23667, 23400, 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 24492, 24792, 25002, 25212, 25446, 25639, 25800, 25908, 26033, 26277.