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 23111, 23400, 23667, 23894, 24200, 24492, 24792, 25446, 25100, 25800, 26400.

The Nifty recovered by 1000 points after taking support on the 22800 level the first time around and by 400 points the second time around making a lower top indicating some weakness and a continuation of the adjustment process. Maximum call open interest comes in at 24000 followed by 23000 while maximum put open interest comes in at 22000 followed by 22500 indicating a rather unsure trading range (a bit surprising considering the fact that we are in the third week of the current series) compared to the last week but the situation remains fluid with movements expected on either side. Nifty has seen some increase in open interest during the week to end at 01.74 cr (rounded off) and has seen a up tick of nearly 00.65% (rounded off) on the last trading session of the week; the Bank Nifty has seen some solid open interest being increased during the week to end at 31.79 lakh (rounded off) compared to the last week; has actually seen open interest (03.60%) being higher 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 14.00 level (in terms of closing) except that it ended at 15.02 (higher from an intra week low of 12.20) which has resulted in the Nifty generally being mixed during the week. The Nifty has faltered again which is a worrisome sign despite a rather oversold situation while the Vix has been getting stronger adding fuel to the fire so to speak. A range has been formed between 22800 on the downside and 23800 on the upside and only a breach of either level will determine the direction of the immediate future trend. 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 23111, 23400, 23667, 23894, 24200, 24492, 24792, 25446, 25100, 25800, 26400.