Market Outlook for 30 January 2024

Ruchit Jain Ruchit Jain Ruchit Jain 30th January 2024 - 11:33 am
Listen icon

Nifty started the week with a gap up opening as the global markets stood firm when we had an extended weekend. The index continued its up move throughout the day led by some of the heavyweights, and ended around 21750 with gains of almost a couple of percent.

Nifty Today:

Post the last week’s corrective phase, Nifty recovered much of those losses in a single trading session on Monday led by the heavyweights such as ONGC and RELIANCE IND which witnessed up move of about 7-9 percent. Last week, the index had ended around its 40 DEMA support which was a crucial one, and the average played its role well during correction. Also, if we look at the derivatives data, FII’s had rolled over their short bets in the index futures with short positions at 78 percent and net short contracts over 1.08 lakh contracts. These positions are seen as short heavy and such short heavy positions around the support usually leads to a short covering move. Now, the index has retraced 61.8 percent of the recent correction in a single trading day and level around 21900 would be the crucial zone of the index. The RSI oscillator on the hourly charts is indicating a positive momentum but it's yet to give a positive crossover on the daily chart. A close above 21900 could confirm a resumption of the uptrend. On the lower side, 21570-21500 would be seen as the immediate support from a very short term perspective.

                          RELIANCE and ONGC leads Nifty higher, short covering possible ahead of event

Traders are advised to trade with the momentum and look for stock specific buying opportunities. Also one should keep a close tab on the data to see if these short heavy positions are covered ahead of the event (Interim Budget).

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

  Nifty Levels Bank Nifty Levels FINNIFTY Levels
Support 1 21640 45400 20280
Support 2 21530 45150 20150
Resistance 1 21860 45700 20500
Resistance 2 21980 45950 20600

How do you rate this article?

Characters remaining (1500)

Disclaimer: Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

FREE Trading & Demat Account
Resend OTP
Resend OTP
''
''
Please Enter OTP
By proceeding, you agree T&C*
Mobile No. belongs to

Market Outlook Related Articles

Market Outlook for 24 May 2024

by Ruchit Jain 24th May 2024

Market Outlook for 23 May 2024

by Ruchit Jain 23rd May 2024

Market Outlook for 22 May 2024

by Ruchit Jain 22nd May 2024

Want to Use 5paisa
Trading App?