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SENSEX: 40544.37 112.77

NIFTY: 11896.80 23.75

Market Outlook

Ventura Securities,

12.00 AM Sep 28th

Support comes in at the 10979, 10878, 10783, 10665, 10550, 10490, 10380, 10250, 10129, 10025, 9925, 9830, 9700, 9533, 9450, 9367, 9218, 9119, 9030, 8988, 8893, 8810, 8731, 8620, 8531, 8448, 8369, 8290, 8150, 8055, 7979, 7924 while resistance comes in at 11078, 11143, 11235, 11340, 11495, 11605, 11753, 11856, 11959, 12100, 12292.

The Nifty has more or less behaved on expected lines; the correction has continued to play out and this time around it finally breached the 11153 level to fall sharply to a low of 10790 but recovered a bit to close the week above the 11000 level. The outlook is similar, the correction might not yet be over and a lower top lower bottom has creped in on the weekly chart. Maximum call open interest comes in at 11500 followed by 11000 while maximum put open interest comes in at 10500 followed by 11000 indicating a clearly lower (but rough) trading range (not very surprising considering the fact that we are in the first week of a new series) compared to the last week but the situation remains fluid with movements expected on either side. Nifty has seen some major decline in open interest during the week to end at 78.15 lakh (rounded off) and has seen a decrease of nearly 02.85% (rounded off) on the last trading session of the week; the Bank Nifty open interest has seen nominal open interest being reduced (it stands at 15.32 lakh - rounded off) compared to the last week; has actually seen some notable decrease in open interest (07.85%) on the last trading session of the week. The Vix has spent almost the entire week in a rangebound movement (with no bias) above the 20.50 level (in terms of closing) except that it ended at 20.68 (higher from an intra week low of 15.76) which has resulted in a mixed market. The Nifty remains corrective and volatile and while positive price action early on in the week might not sustain all throughout; a small bounce in the Bank Nifty seems to be on the cards. The bias is still slightly negative and sustainability at higher levels seems a tad bit suspect; a cautious trading approach is suggested with dexterity to play both sides. Support comes in at the 10979, 10878, 10783, 10665, 10550, 10490, 10380, 10250, 10129, 10025, 9925, 9830, 9700, 9533, 9450, 9367, 9218, 9119, 9030, 8988, 8893, 8810, 8731, 8620, 8531, 8448, 8369, 8290, 8150, 8055, 7979, 7924 while resistance comes in at 11078, 11143, 11235, 11340, 11495, 11605, 11753, 11856, 11959, 12100, 12292.

Market Action

INDIAN INDICES

S&P BSE Auto17855.6850.06
S&P BSE BANKEX27592.9318.84
NIFTY BANK24311.8045.05
S&P BSE Capital Goods13777.4573.09
S&P BSE Consumer Durables24427.99170.50
S&P BSE FMCG11099.79-42.28
S&P BSE Healthcare19772.2729.54
S&P BSE IT22040.59292.10
S&P BSE Metals8346.681.43
S&P BSE Oil and Gas11965.16-157.29
S&P BSE PSU4524.74-49.82
S&P BSE TECk9994.58161.41
S&P BSE Smallcap14896.1445.26
S&P BSE Midcap14775.1269.27
Nifty MID100 Free17023.30107.50

GLOBAL INDICES

EXCLUSIVE LIVE CHAT!

How are the markets looking?

Hemen Kapadia, Technical Analyst

Day - 20th Oct. 2020
Time - 13.00hrs

View last chat transcript