Market Outlook for 31 October 2023

Nifty started Monday’s session on a flat note and witnessed a minor dip in the first hour of the trade. However, it recovered from the lows and then traded with a positive bias throughout the day to end just below 19150 with gains of about half a percent.

Nifty Today:

Post last week’s fall, Nifty had seen some pullback move in Friday’s session and continued that momentum at the start of the week. However, given the last week’s move, it is difficult to say if the markets have bottomed. If we look at the data, FII’s have about 88 percent of the positions on the short side in the index futures segment which is short heavy. The RSI oscillator on the lower time frame charts were oversold which has resulted in this pullback move but the readings on higher time frame charts are still negative. Hence, this move should just be seen as a pullback move for now and near term trend will depend on the global market news flows and momentum going ahead. The immediate resistances for Nifty in this upmove are seen around 19180 (where hourly 40 EMA is placed) and 19230 (retracement resistance). In the coming session, it will be crucial to see how the index reacts around this resistance level. Traders are advised to stay cautious for a while and look to lighten up positions in the pullback move. On the flipside, the weekly series has seen high open interest build up seen in 19000 put option which would be the immediate support.

Slow and gradual recovery in market, all eyes on global developments 

If this gets breached, then the put writers may have to cover their positions which would have a negative impact on our markets. Traders are advised to watch for above mentioned levels and trade accordingly.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: