Weekly Market Outlook for 29th April to 3rd May

Nifty traded with a positive bias during last week as the index surpassed 22600 mark on the expiry day, but it gave up some of the gains in the last trading sessions and ended just above 22400 with weekly gains of over a percent.

Nifty Today:

In last one week, we have not seen any huge move in the index except on the expiry day, but the broader markets have been rallying and the midcap and the small cap indices are trading at record highs. This clearly indicates stock specific buying interest amongst market participants and hence the market breadth also is positive. In the last week, the rollovers in the F&O segment in Nifty and BankNifty were lower than their 3-month averages. Data indicates that since FIIs had significant short positions, they have rolled over lesser quantum of short positions to the May series. However, majority of their positions are still on the short side at the start of the series. Technically, Nifty is trading in a rising channel and the index has recently formed a support base around the 89 DEMA around 21800. The immediate support at 40 DEMA is placed at 22240 followed by 22000 and resistance is around 22600. Above 22600, we could see the index rallying towards new highs of 22800 and 23000.
 
Traders are advised to continue to focus on stock specific momentum and trade with a positive bias.
 
 

                                            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: