Market Outlook

Support comes in at the 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 22974, 23111, 23400, 23667, 23894, 24150, 24344, 24588, 24792, 25002, 25212, 25446, 25669, 25800, 25908, 26104, 26277, 26500.

The Nifty continues to post lower tops and lower bottoms indicating continued weakness and until this sequence doesn’t stop, the picture remains shaky and the negative overhang which has enveloped the markets refuses to go away. Maximum call open interest comes in at 23000 followed by 23500 while maximum put open interest comes in at 22000 followed by 23000 indicating a clearly lower trading range compared to the last week (not very surprising considering the fact that we are in the last 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 00.91 cr (rounded off) and has seen a down tick of nearly 30.30% (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 10.09 lakh (rounded off) compared to the last week; has actually seen open interest (22.08%) 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 24.50 level (in terms of closing) except that it ended at 26.80 (higher from an intra week low of 22.81) which has resulted in the Nifty generally being weaker during the week. The Nifty remains wobbly but quite oversold indicating the possibility of a bounce but with the monthly derivative expiry coupled with two holidays during the week make it a rather difficult scenario to envisage overall. Support comes in at the 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 22974, 23111, 23400, 23667, 23894, 24150, 24344, 24588, 24792, 25002, 25212, 25446, 25669, 25800, 25908, 26104, 26277, 26500.