Market Outlook

Support comes in at the 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 22526, 22769, 22974, 23111, 23263, 23667, 23894, 24150, 24344, 24588, 24792, 25002, 25212, 25446, 25669, 25800, 25908, 26104, 26277, 26500.

The Nifty has continued its free fall and the series of progressively lower tops and lower bottoms continues unabated and though an oversold situation has unfolded on the short term charts there is still a question mark over the scenario (depending in levels). Maximum call open interest comes in at 23000 followed by 22700 while maximum put open interest comes in at 22300 followed by 22200 indicating a clearly lower 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 01.92 cr (rounded off) and has seen an uptick of nearly 06.33% (rounded off) on the last trading session of the week; the Bank Nifty has seen open interest being majorly increased during the week to end at 23.46 lakh (rounded off) compared to the last week; has actually seen open interest (02.04%) 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 12.00 level (in terms of closing) except that it ended at 14.46 (higher from an intra week low of 12.16) which has resulted in the Nifty generally being relatively weak during the week. The Nifty is oversold on the short term charts indicating the possibility of a near term bounce but will this recovery sustain depends on a close above the 22769 level while IT could be a surprise positive sector. Support comes in at the 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 22526, 22769, 22974, 23111, 23263, 23667, 23894, 24150, 24344, 24588, 24792, 25002, 25212, 25446, 25669, 25800, 25908, 26104, 26277, 26500.