Market Outlook

Support comes in at the 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 22300, 22526, 22769.

The Nifty had been under pressure throughout the week (despite a holiday curtailed week) until there was a turnaround on the last trading session of the week when it formed an upward key reversal indicating the possibility of near term respite. 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 (not surprising considering the fact that we are in the last 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 notable decrease in open interest during the week to end at 01.03 cr (rounded off) and has seen a reduction of nearly 10.01% (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 16.49 lakh (rounded off) compared to the last week; has actually seen some major open interest (12.37%) being lower on the last trading session of the week. The Vix has spent almost the entire week in a rangebound movement (with a positive bias) above the 12.00 level (in terms of closing) except that it ended at 13.46 (higher from an intra week low of 11.31) which has resulted in the Nifty generally being weak during the major part of the week. The Nifty is oversold on the extreme short term charts besides having taken support on the 55 day EMA and the 21834 level which seems to be pointing towards the possibility of a bounce, the sustainability of which seems difficult to ascertain in an expiry week. A stock specific approach needs to be the order of the day. Support comes in at the 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 22300, 22526, 22769.