Market Outlook for 27 February 2024

Nifty started the week marginally negative and the index traded within a narrow range throughout the day. Amidst stock specific momentum, Nifty ended the day above 22100 with a loss of less than half a percent.

Nifty Today:

During last week, Nifty registered a new all-time high but momentum has been lacking since the midcap index has entered a consolidation phase. In Nifty, the recent up move has been because of some short covering and we have not seen significant long build up. FIIs have reduced some of their net short positions and their ‘Long Short Ratio’ now stands around 44 percent. In the options segment, the coming February series data hints at a support around 22000 mark, where high open interest of around 68 lakhs contracts is seen, while similar quantum of open interest is seen in 22200 and 22300 call options which seems to be the resistance zone. The 20 DEMA support is placed around 21930 and hence, looking at the data it seems that the index would consolidate within this broad range for now.

                                          Nifty consolidates in a range amidst stock specific action

Only if the index gives a breakout beyond the range, coupled with unwinding of positions in the above options would lead to a directional move before expiry. Hence, traders are advised to trade with a stock specific approach in the near term.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: