Market Outlook

Support comes in at the 25669, 25446, 25212, 25002, 24792, 24588, 24344, 24150, 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 25800, 25908, 26104, 26277, 26500.

The Nifty has once again reversed due to a rising Vix and the sharp spike in the Pcr as clearly mentioned last week, not to forget the close below the 26277 level again thereby putting a question mark over the breakout which has now obviously fizzled out. Maximum call open interest comes in at 26000 followed by 26200 while maximum put open interest comes in at 25500 followed by 25600 indicating a clearly lower trading range compared to the last week (not very surprising considering the fact that we are in the second week of the current series) but the situation remains fluid with movements expected on either side. Nifty has seen some solid increase in open interest during the week to end at 01.69 cr (rounded off) and has seen an up tick of nearly 03.78% (rounded off) on the last trading session of the week; the Bank Nifty has seen some major open interest being decreased during the week to end at 12.00 lakh (rounded off) compared to the last week; has actually seen open interest (02.27%) 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 09.40 level (in terms of closing) except that it ended at 10.92 (higher from an intra week low of 09.24) which has resulted in the Nifty generally being weaker in the latter part of the week. The Nifty has wilted under obvious selling pressure due to geopolitical tensions and the way things are, there doesn’t seem to be a timeline on this scenario meaning that this volatility (read as weakness) could continue. A prudent approach would be to stay away for the time being. Support comes in at the 25669, 25446, 25212, 25002, 24792, 24588, 24344, 24150, 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 25800, 25908, 26104, 26277, 26500.