Weekly Market Outlook for 27 November to 01 December

In last one week, Nifty has consolidated within a narrow range of 19700-19850. Amidst some stock specific action, Nifty ended the week around 19800 with weekly gains of one-third of a percent.

Nifty Today:

Our markets have been going through a consolidation phase as the Nifty index traded within a range of about 200 points throughout the week. In the month of October, the index resisted around 19850 and now post the pullback move from the recent swing low, it has been resisting around the same level. The index has not managed to surpass the 19850-19875 range and a breakout above this hurdle is required for a continuation of the momentum. On the flipside, 19700-17670 is the immediate support range followed by the 40 EMA which is placed around 19550. In the derivatives segment, FIIs continue to hold significant short positions with over 75 percent of the positions on the short side. A breakout above the mentioned resistance one in the truncated expiry week could lead to some short covering by them. Hence, traders are advised to watch for a breakout from the above mentioned zone and then trade in the direction of the breakout. 

Low volatility ahead of expiry week; breakout could lead to directional move

The Midcap and the Small Cap indices rallied higher gradually and clocked new record highs during the week. However, the momentum readings are in the overbought one in these indices and hence, traders should be selective and avoid aggressiveness while looking for delivery base buying here in the mid and small cap names.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: