Market Outlook

Support comes in at the 22526, 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 22125, 22526, 22800.

The Nifty has reacted positively to the oversold situation to stage a scintillating recovery in a holiday riddled week to come within striking distance of its all time high with support also coming in from the Bank Nifty. Maximum call open interest comes in at 22600 followed by 22300 while maximum put open interest comes in at 22300 followed by 22000 indicating a slightly tight trading range (a bit surprising considering the fact that we are in the first 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 increase in open interest during the week to end at 01.07 cr (rounded off) and has seen an increase of nearly 27.67% (rounded off) on the last trading session of the week; the Bank Nifty has seen massive open interest being increased during the week to end at 32.46 lakh (rounded off) compared to the last week; has actually seen some nominal open interest (01.63%) 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 12.00 level (in terms of closing) except that it ended at 12.83 (higher from an intra week low of 12.08) which has resulted in the Nifty generally being on a recovery mode during the latter part of the week. The Nifty has shown resilience with chutzpah and alacrity while a close above 22526 could trigger off an upside while a lower Vix helps and on the flip side, Brent looks positive so does the Dollar Index adding to the confusion. Capital Goods and Auto Index have posted fresh all time highs. Cautiously optimistic is the way ahead. Support comes in at the 22526, 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 22125, 22526, 22800.