Market Outlook for 2 November 2023

Our markets traded with a negative bias ahead of the Fed meeting as traders seemed cautious post the recent pullback move which resisted in the range of 19200-19250. The index breached the 19000 mark at close and ended with a loss of about half a percent.

Nifty Today:

Our markets witnessed a pullback move from the low of 18837 to 19233 in the last few sessions. However, the data has not turned positive as the FII’s continue with their short positions in the index futures, where they have over 86 percent of the positions on the short side. Also the hourly 40 EMA was placed around 19230 which became the resistance. The momentum readings are negative on the short term as well as the medium term charts indicating that the near term trend remains corrective. If there’s no positive reaction in the global markets to the FED policy outcome, then our markets could continue this down move towards the recent swing low and probably even breach that level. For the coming session, 19100-19140 will be seen as the immediate hurdle as the hourly 40 EMA is placed there now and even in the options segment, 19100 call has the highest open interest. 

Data hints at negative momentum in Nifty, eyes on Fed policy outcome 

A move above this resistance zone could then lead to a short covering move, but until this hurdle is surpassed the momentum remains negative. We continue with our advice for traders to stay cautious until there are any positive signs in the data.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: