Market Outlook

Support comes in at the 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 22769, 22974, 23111, 23400, 23667, 23894, 24150, 24344, 24588, 24792, 25002, 25212, 25446, 25669, 25800, 25908, 26104, 26277, 26500.

The Nifty hasn’t changed its attributes and continues to post lower tops and lower bottoms indicating continued weakness and until this sequence doesn’t stop, the picture remains wobbly and the negative overhang which has enveloped the markets has refused 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 22500 indicating a slightly similar trading range compared to the last week (not very surprising considering the fact that we are in the first week of the current series) but the situation remains fluid with movements expected on either side. Nifty has seen solid increase in open interest during the week to end at 02.14 cr (rounded off) and has seen an up tick of nearly 02.94% (rounded off) on the last trading session of the week; the Bank Nifty has seen open interest being increased during the week to end at 25.32 lakh (rounded off) compared to the last week; has actually seen open interest (03.30%) 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 25.52 (higher from an intra week low of 23.65) which has resulted in the Nifty generally being weaker during the week. The Nifty hasn’t shown any signs of stability, let alone a reversal but a rather deep oversold situation has developed on the short term charts indicating the possibility of a rebound from here despite the aforementioned weakness. A cautiously optimistic approach is suggested while Sugar and IT as sectors look like possibly positive movers. Support comes in at the 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 22769, 22974, 23111, 23400, 23667, 23894, 24150, 24344, 24588, 24792, 25002, 25212, 25446, 25669, 25800, 25908, 26104, 26277, 26500.