Market Outlook

Support comes in at the 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, 15900, 15600, 15432, 15257, 15064, 14869, 14653, 14434, 14250, 14000, 13778, 13598, 13400, 13145, 12950, 12770, 12600, 12431, 12292, 12100, 11959, 11856, 11753, 11605, 11495, 11340, 11235, 11143, 11078 while resistance comes in at 22125, 22526, 22800.

The Nifty has continued with its lower top, lower bottom formation on the daily chart indicating short term weakness while the extreme near term picture is getting just a bit oversold indicating the possibility of some stability coming in. Maximum call open interest comes in at 23000 followed by 22500 while maximum put open interest comes in at 22000 followed by 21000 indicating a slightly vague trading range (a bit surprising considering the fact that we are in the fourth 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 decrease in open interest during the week to end at 01.02 cr (rounded off) and has seen a decrease of nearly 12.48% (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 17.41 lakh (rounded off) compared to the last week; has actually seen some major open interest (09.53%) being lower on the last trading session of the week. The Vix has spent almost the entire week in a rangebound movement (with a negative bias) above the 12.00 level (in terms of closing) except that it ended at 12.22 (higher from an intra week low of 11.81) which has resulted in the Nifty generally being on a recovery mode during the latter part of the week. The Nifty continues to remain corrective along with the mid cap stocks and the small cap stocks while a mild oversold situation coupled with a weak Vix could mean some respite while a holiday riddled week along with a monthly expiry would mean a classical period of inactivity would be prudent. Support comes in at the 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, 15900, 15600, 15432, 15257, 15064, 14869, 14653, 14434, 14250, 14000, 13778, 13598, 13400, 13145, 12950, 12770, 12600, 12431, 12292, 12100, 11959, 11856, 11753, 11605, 11495, 11340, 11235, 11143, 11078 while resistance comes in at 22125, 22526, 22800.