Weekly Market Outlook for 27 May to 31 May
Nifty Outlook 27 Jan 2023
Nifty started the expiry day around 18100 mark but it witnessed selling pressure right from the word go and it breached the supports one after another. The index traded under pressure throughout the day and ended below 18900 with a loss of over 200 points.
Nifty Today:
Nifty has consolidated in a range since last few weeks, and thus traders were expecting the index to continue its rangebound move on the expiry day as well. In this anticipation, the option writers had positioned with writing in 18000 put and 18200 call. However, the market participants were amazed on the expiry day as the index broke the important support of 18000 and the option writers had to unwind their positions. The Nifty witnessed sharp correction along with the broad market sell-off and hence, all the indices ended in the red. India VIX increased by 7% indicating rise in uncertainty. Now the index is again close to the recent swing low of 17800-17750 which has acted as a sacrosanct and if this gets breached, then that would lead to further negative momentum. On the flipside, 18100 followed by 18200-18250 would now become resistance on pullback moves.
Index continues its consolidation, stock specific action seen
Looking at the expiry day move, traders should avoid aggressive positions and look for how market positions build up at the start of the new F&O series.
Nifty & Bank Nifty Levels:
|
Nifty Levels |
Bank Nifty Levels |
Support 1 |
17770 |
41200 |
Support 2 |
17690 |
41000 |
Resistance 1 |
18050 |
42400 |
Resistance 2 |
18200 |
42800 |
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