Market Outlook for 20 October 2023

Nifty started the session on a negative note on its weekly expiry day, but it recovered some of the losses and ended above 19600 marginally down from previous close.

Nifty Today:

Nifty has resisted around the 61.8 percent retracement of the recent correction and has not surpassed the important hurdle which was around 19850-19880. The price action from this resistance indicates that the index could continue to trade in a corrective phase for a while. Hence, until the index surpasses this resistance, short term traders should avoid aggressive longs. The immediate support for Nifty is placed around 19480 followed by 19385 and 19330. The Bank Nifty index has been primarily underperforming and has been witnessing selling pressure on pullback moves. The RSI oscillator in the Bank Nifty index is negative, hinting at a weak momentum while the oscillator on the Nifty charts is sideways and on verge of a negative crossover. Also, FII’s have not covered much of the short positions in the index futures segment in recent pullback move and about 70 percent of the positions are on the short side.

Short positions of stronger hands intact in index futures

Hence, we advise traders to avoid aggressive longs for a while until we see signs of resumption of the upmove.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: