Market Outlook

Support comes in at the 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 22300, 22526, 22769, 23111, 23400, 23667, 23894, 24200, 24492, 24792, 25446, 25100, 25800, 26400.

The Nifty has finally done what it was threatening to do for the last few trading sessions, breach the 22800 level and has even gone below the 22526 level indicating prolonged weakness. Maximum call open interest comes in at 22500 followed by 23000 while maximum put open interest comes in at 21800 followed by 21500 indicating a well formed trading range (a bit surprising considering the fact that we are in the first 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 solid increase in open interest during the week to end at 01.79 cr (rounded off) and has seen an up tick of nearly 06.86% (rounded off) on the last trading session of the week; the Bank Nifty has seen some open interest being increased during the week to end at 33.38 lakh (rounded off) compared to the last week; has actually seen open interest (00.80%) 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 13.00 level (in terms of closing) except that it ended at 13.91 (higher from an intra week low of 12.91) which has resulted in the Nifty generally being weak during the week. The Nifty has continued its lower top, lower bottom scenario to continue to sink further with virtually no signs of a reversal and has even added a couple of bearish gaps to add to the downmove. A deeply oversold situation while a close above 22526 level followed by a close above the 22769 level would be the first technical green shoots. Support comes in at the 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 22300, 22526, 22769, 23111, 23400, 23667, 23894, 24200, 24492, 24792, 25446, 25100, 25800, 26400.