Market Outlook for 8 November 2023

In Tuesday’s session, Nifty started on a positive note but witnessed a pullback move in the initial couple of hours. However, the dip witnessed buying interest at lower levels and it recovered the intraday losses to end the day above 19400.

Nifty Today:

Our markets continued with the pullback move, where buying interest was seen in the intraday decline. FII’s continue to cover their short positions gradually and have reduced some of their short positions. The index is now near its immediate resistances which are seen around 19440 and 19530. While the momentum remains positive, it is advisable not to chase around the resistance levels and keep a buy-on-dip approach. The hourly momentum readings are now in an overbought zone and hence, traders can choose to book some profits on long positions. In the options segment, 19300 put and 19500 call options have the highest open interest which could be the trading range for the next couple of sessions. The Bank Nifty index outperformed ahead of its weekly expiry and open interest build up was seen in 43600-43500 put options which would be seen as the support zone on the expiry day.

Nifty approaching immediate hurdle around 19500

The Nifty Small cap index registered a new high inspite of the benchmark still away from its previous high. This indicates a buying interest seen in the broader markets and thus, trading with a stock specific approach could be a better idea for short term trading.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: