Market Outlook

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

The Nifty has more or less moved on expected lines as the anticipated minor decline seemed to have acquired bigger proportions and the 25212 level was breached without much further ado hence spoiling the near term picture. Maximum call open interest comes in at 25000 followed by 25500 while maximum put open interest comes in at 24500 followed by 24600 indicating a clearly lower trading range compared to the last week (not very surprising considering the fact that we are in the fifth week of the current series) but the situation remains fluid with movements expected on either side. Nifty has seen some major decrease in open interest during the week to end at 00.97 cr (rounded off) and has seen a down tick of nearly 22.50% (rounded off) on the last trading session of the week; the Bank Nifty has seen some open interest being reduced during the week to end at 14.47 lakh (rounded off) compared to the last week; has actually seen open interest (09.02%) 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 09.50 level (in terms of closing) except that it ended at 11.42 (higher from an intra week low of 09.96) which has resulted in the Nifty generally being weak during the week. The Nifty has reversed direction with alacrity to not only slice through important levels but cover up all bullish gaps and form a bearish gap on the downside. A mild oversold situation could result in a bounce while the setup has acquired a slightly negative tinge. Support comes in at the 24492, 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 24792, 25002, 25212, 25446, 25639, 25800, 25908, 26033, 26277.