Weekly Market Outlook for 13 November to 17 November

In the week gone by, Nifty traded in a narrow range and ended above 19400 with weekly gains of a percent. However, the broader markets witnessed good momentum as hence, the midcap and the smallcap indices outperformed the benchmark. 

Nifty Today:

It was a week of consolidation or a time-wise correction for the markets as the benchmark indices traded in a narrow range. However, the small cap index registered a new all-time high and the midcap index too rallied sharply. The outperformance from these indices clearly indicates a stock specific buying interest which could continue in the near term. But the Nifty index is trading near its crucial resistance zone of 19450-19550 which needs to be surpassed for a continuation of the upmove. In the initial stage of this upmove from the low, FIIs had covered some of their short positions in the index futures segment but they have been reluctant to trim their positions further and still hold around 80 percent positions on the short side. Hence, it will be crucial to see if the index surpassed the above mentioned hurdle and whether these stronger hands cover their positions which would then lead to a continuation of momentum towards 19690. On the flipside, 19300 is seen as the immediate support for the index which if broken, then we could see some correction. Traders are advised to trade with a stock specific approach and lighten up positions if Nifty breaks the above mentioned support.

Broader markets outperformance led to new high in Small Cap index

The Midcap and the Small Cap indices have outperformed in last couple of weeks but the momentum readings are now approaching the overbought zone on the lower time frame charts. Although the trend could continue in the overbought zone as well, traders should now be very selective and also look to book profits on rise.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: