Weekly Market Outlook for 28 Nov to 2 Dec

Post the recent consolidation phase, the markets resumed its uptrend during the November expiry week and the index rallied sharply on the expiry day. Nifty ended the week above 18500 mark with weekly gains of over a percent and is a small distance away from its all-time high.

Nifty Today:

It was a cheerful week for the market participants as the index resumed its uptrend and has reclaimed 18500 level. The large cap stocks from the Banking, IT and the PSU space has contributed largely to this upmove in the last few weeks. The midcap space has seen a relative underperformance of late as the index is  still consolidating, but we witnessed a buying interest in the broader markets too towards the end of the week which could be initial signs of a broad market participation. The F&O rollover data has been robust with Nifty rollovers at 82 percent while that in Bank Nifty at 88 percent. The FII’s have rolled most of the long positions as they have started the December series with ‘Long Short Ratio’ at 76 percent. Technically, the ‘Higher Top Higher Bottom’ structure continues for the index and until we see the index breaching any important supports, the trend remains intact any hence ‘Buy-on-dip’ approach should be continued. The immediate short term support for Nifty is placed in the range of 18400-18350, while 18170 would be seen as the medium term support where the ’20-day EMA’ is placed. On the flipside, the immediate resistance for Nifty could be seen around 18635 followed by 18700-18800 range.

Broader markets seems geared for an upmove in the coming week

In the recent past, the midcap space has seen an underperformance compared to the benchmark but looking at the momentum in Friday’s session, it seems that we could see a catch up move in the broader markets and hence the coming week could see good stock specific action. The Nifty Midcap 100 index could see some positive action while the benchmark index could see a gradual upmove. So traders can trade with a buy on dip approach for the index while banking on stock specific action could give good short term trading opportunities. 

Nifty & Bank Nifty Levels: