Market Outlook for 01 February 2024

Market Outlook for 01 February 2024
Market Outlook for 01 February 2024

by Ruchit Jain Last Updated: Jan 31, 2024 - 05:01 pm 900 Views
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Our markets witnessed a subdued opening in Wednesday’s session, but the indices recovered smartly from the opening lows and it rallied higher to trade with a positive bias throughout the day. The Bank Nifty index rallied higher by around 1000 points from the intraday lows on its weekly expiry day. The Nifty index finally ended above 21700 with gains of almost a percent and the Bank Nifty index ended around the 46000 mark.

Nifty Today:

The markets have traded with high volatility in last few sessions ahead of the Interim Budget. The Nifty index has traded in a broad range with swing on both sides. The index recently corrected and formed a support base around the 40 DEMA which is now placed around 21300. On the flipside, 21800 has been acting as a resistance zone which needs to be surpassed for a continuation of the uptrend. The recent correction from the high has been mainly because of FIIs selling in cash and the index futures segment and still they have significant positions in the index futures on the short side. Now markets would be reacting to couple of events in the coming session i.e. FED Policy outcome and the Interim Budget. It would be crucial to see which side the index gives a breakout. A closing above 21800 could lead to a continuation of the uptrend where the index can then rally to mark a new record high again. On the flipside, the above mentioned moving average support at 21300 remains a crucial support for the index. The markets breadth as of now is positive, thus traders are advised to trade with a stock specific approach and look for directional trade in the index on a close beyond the above mentioned range.

                                            Market turns volatile as traders eyeing two major events

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

  Nifty Levels Bank Nifty Levels FINNIFTY Levels
Support 1 21540 45750 20400
Support 2 21300 45320 20250
Resistance 1 21830 46430 20670
Resistance 2 22120 46850 20850

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About the Author

Ruchit Jain is Lead Research Analyst at 5paisa. He has a vast experience of 14 years in this field and is proficient in Technical and Derivatives Research. He has completed his CMT (U.S.A.) and has done Masters in the field of Finance at Mumbai University.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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