Weekly Market Outlook for 6 November to 10 November

In the week gone by, Nifty witnessed a gradual pullback move where the index witnessed recovery from mid-week dip around 19000 led by positive momentum in the global markets. The index ended the week well above 19200 with weekly gains of almost a percent.

Nifty Today:

Recently, our markets have moved more in tandem with the global markets movement and the global news flows had more impact on the momentum. The US markets recovered post the Fed policy outcome and hence, our markets too witnessed a pullback move in last couple of sessions. FII’s have significant short positions outstanding with about 85 percent positions on the short side in the index futures segment. The positions are short-heavy and hence, if they start covering their short positions then it could lead to a decent rally in the short term. The RSI oscillator on the daily and the hourly charts have given a positive crossover indicating a short term positive momentum. However, on the way up the index has crucial hurdles around 19370 and 19450 and it needs to be seen if these levels get surpassed. On the flipside, 19150 and 18970 are the immediate support levels which if breached, then it could result in another leg of the down move. The market breadth has turned positive which is a good sign.

Short heavy positions by FIIs, unwinding could lead to an upmove

Hence, traders are advised to keep a close watch on the data and the above levels and look for buying opportunities with a stoploss placed below the mentioned support.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: