Market Outlook

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

The Nifty has finally broken down from its trading range (mind you after being resilient) by closing below the 23800 level indicating weakness while a recovery to the aforesaid level hasn’t amounted to much until there is a decisive close above it. Maximum call open interest comes in at 24000 followed by 23800 while maximum put open interest comes in at 23000 followed by 23500 indicating a clearly lower trading range compared to the last week (not very surprising considering the fact that we are in the third week of the current series) but the situation remains fluid with movements expected on either side. Nifty has seen a nominal decrease in open interest during the week to end at 01.70 cr (rounded off) and has seen a down tick of nearly 03.47% (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 21.84 lakh (rounded off) compared to the last week; has actually seen open interest (01.98%) being lower 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 17.50 level (in terms of closing) except that it ended at 18.79 (higher from an intra week low of 16.84) which has resulted in the Nifty generally being weak during the week. The Nifty is looking wobbly, the currency at an all time low, crude looking strong and the geopolitical situation still volatile, the outlook has turned a bit negative while a close below the 23400 level could mean more pain. Support comes in at the 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 23667m 23894, 24150, 24344, 24588, 24792, 25002, 25212, 25446, 25669, 25800, 25908, 26104, 26277, 26500.