Market Outlook for 24 April 2024

Following the positive global cues, Nifty witnessed a positive start around 22450 in Tuesday’s session, but it then consolidated within a narrow range throughout the day and ended below 22400 with marginal gains.

Nifty Today:

Post the gap down opening on last Friday, Nifty has seen a recovery from the lows in last three trading sessions and have retraced the recent correction by 61.8 percent. Technically, this retracement level is seen as an immediate hurdle for the index and hence, the follow up move in the next couple of sessions will be important to see. FII’s derivatives stats remains bearish as they have about 65 percent of the positions in the index futures segment on the short side and have not covered these positions in this pullback move. Also, the RSI oscillator on the daily and the weekly chart is negative which does not give confidence for a sustained rally towards new highs. Hence, it is advisable to book some profits on trading long positions and take some money off the table. As per the options data, 22400-22500 is seen as a hurdle where decent open interest is seen. This also coincides with the 61.8 percent retracement resistance mentioned above. Thus, it would be prudent to lighten up longs here and look to re-enter either on a breakout above 22500 or on any dip. The immediate support for the index is placed around 22200 followed by 22030-22000 zone

India VIX declines sharply by 20 percent which mainly seems due to lower volatility expectations as tensions related to global geopolitical tensions have eased a bit, some of the major index heavyweights have declared their results and markets have probably started factoring the election results. Falling VIX is usually not favorable for options buyers and hence, such traders should be cautious on taking directional bets.

                                            Nifty turns lower ahead of weak global cues

Nifty, Bank Nifty Levels and  FINNIFTY Levels: