Market Outlook for 22 November 2023

Nifty started the day on a positive note as the global markets hinted at some positivity. However, post opening the index traded within a narrow range and ended just below 19800 with gains of about half a percent.

Nifty Today:

In last few trading sessions, Nifty has consolidated within a narrow range where 19850-19870 has acted as a resistance zone. The same hurdle was seen in the month of October as well which needs to be surpassed for a continuation of this uptrend. The Midcap and the Small-cap indices continue to register new highs, but the momentum readings are in the overbought zone on the lower time frame charts there. FII’s still have about 80 percent of the positions in the index futures on the short side and the 19800 weekly call option has the highest open interest. The overall data indicates that the index is likely to witness consolidation in this range of 19870-19670 for a while and a breakout beyond this range will lead to a directional move. Hence, traders are advised to trade with a stock specific approach for now, and look to opportunities in the index on a breakout on either side from the above mentioned range.

Immediate hurdle in Nifty at 19850-19870

On the weekly expiry day, the Bank Nifty index has important support in the range of 43700-43800 as high open interest is seen in the call options at these strikes. Above this, the index could see some short covering upto 44000. On the flipside, 43500-43450 will be the important support zone to watch. 

Nifty, Bank Nifty Levels and  FINNIFTY Levels: