Weekly Market Outlook for 13 Feb to 17 Feb

During the week gone by, the minor decline in the early part of the week witnessed some buying interest as the market recovered from the lows around 17650 upto 17900, and it then consolidated within a range in last couple of sessions. Nifty ended the week below 17900 on a flat note.

Nifty Today:

Post the volatility seen in the Budget week, our markets have stabilized as the negative impact of the sharp correction in the Adani group stocks over the broader markets have subsided. India VIX has declined to below 13 which is a positive sign. Nifty has been trading within a channel and it is now near the higher end of the pattern which is in the range of 17950-18000. The global markets have done well recently but our markets have not seen such a move and have underperformed the global peers. The main reason for the underperformance has been the selling by the FIIs who have sold equities in the cash segment and have been sellers in the index futures segment too. Their ‘Long Short Ratio’ in the index futures segment is around 19 percent. These positions are short heavy and any positive trigger could lead to short covering by them. This would be the major trigger for the market and hence, traders should keep a close watch on their positions. The broader markets have started picking up momentum as the Nifty Midcap100 index has formed a strong support base at the recent lows around 30000. Hence, traders should look for stock specific buying opportunities from the broader markets from a short term perspective.

Broader markets have started picking momentum as volatility subsides

As far as Nifty is concerned, a breakout above 17950-18000 could then lead to a gush of buying interest and short covering which could lead it towards 18200-18250. On the flipside, 17700-17600 is seen as the immediate support range.

Nifty & Bank Nifty Levels: