Weekly Market Outlook for 15th April to 19th April

The benchmark indices started on a weak note and continued downward during Friday's session, influenced by weak global cues. Both the Nifty50 and BankNifty experienced a sharp decline of almost 1% each after reaching their all-time highs on Wednesday. 

Nifty Today:

Overall, it was a short trading week due to a holiday on Thursday. During Wednesday's session, the Nifty had reached a new all-time high of 22,775.70, and the SENSEX also hit an all-time high of 75,124.28 for the first time in history after the Indian market closed. The U.S. market witnessed further volatility due to higher-than-expected inflation data, which raised concerns among market participants about the postponement of a rate cut.

As a result, we observed a correction in the domestic market on Friday. The Nifty settled in negative territory at the 22,519 mark, while the BankNifty closed at 48,564. Additionally, all other indices closed in the red, with India VIX jumping more than 3%, closing at 11.48.

Technically, on the daily chart, the Nifty faced a third-point trendline reversal around the 22,775 level and turned bearish. The index slipped over 1% on Friday and settled near the previous week's close. The momentum indicator RSI witnessed a negative crossover, suggesting further downside potential in the near term. On the hourly chart, the Nifty index showed a breakdown from the Rising Wedge pattern and closed below the 50 EMA.

Regarding options, the highest call Open Interest (OI) is at the 22,700 followed by the 22,600 strike prices, while the highest Put OI has shifted to the 22,200 followed by the 22,500 strike prices. Therefore, for the coming week, if the Nifty50 sustains below the 22,500 level, we may see selling pressure towards the levels of 22,300/22,200. On the upside, 22,700 may act as a resistance zone.
 

                                            Nifty turns lower ahead of weak global cues

Therefore, traders are advised to focus on stock-specific actions and keep an eye on the development of option chain data, earnings numbers, as well as global events such as geopolitical tensions, the dollar index, bond yield movements, and commodity prices.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: