Market Outlook

Support comes in at the 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 23400, 23667, 23894, 24150, 24344, 24588, 24792, 25002, 25212, 25446, 25669, 25800, 25908, 26104, 26277, 26500.

The Nifty has remained under significant pressure and whatever recovery does unfold, it remains hollow and extremely suspect in terms of sustainability and the negative overhang which has enveloped the markets refuses to go away. Maximum call open interest comes in at 23800 followed by 23500 while maximum put open interest comes in at 23000 followed by 22500 indicating a clearly lower trading range compared to the last week (not very surprising considering the fact that we are in the fourth week of the current series) but the situation remains fluid with movements expected on either side. Nifty has seen solid decrease in open interest during the week to end at 01.72 cr (rounded off) and has seen a up tick of nearly 00.29% (rounded off) on the last trading session of the week; the Bank Nifty has seen open interest being decreased during the week to end at 19.37 lakh (rounded off) compared to the last week; has actually seen open interest (02.74%) being lower on the last trading session of the week. The Vix has spent almost the entire week in a rangebound movement (with an upward bias) above the 18.50 level (in terms of closing) except that it ended at 22.81 (higher from an intra week low of 18.59) which has resulted in the Nifty generally being weaker during the week. The Nifty overall picture remains frail and despite oversold, the picture doesn’t seem very copacetic while the 22974 level could make or mar the sentiment i.e. a close below this level could mean further weakness. A recovery cannot be ruled out but the aforesaid level’s sanctity is the centrepiece of such a bounce if any. Support comes in at the 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 23400, 23667, 23894, 24150, 24344, 24588, 24792, 25002, 25212, 25446, 25669, 25800, 25908, 26104, 26277, 26500.