Market Outlook for 02 February 2024

Ruchit Jain

Last Updated: 28th February 2024 - 03:58 pm

Although it was the day of two major events, the indices traded in a narrow range in Tuesday’s session and the volatility subsided as the events were over. Nifty resisted around 21800-21830 range and ended the day below 21700 with a marginal loss.

Nifty Today:

Our markets had traded with high volatility before the major events which coincided with the weekly Nifty expiry day. However, the markets did not react much to the Fed policy outcome as it was much on the expected lines whereas the Budget speech too did not result in any significant momentum. Infact the indices consolidated within a narrow range as the INDIA VIX declined substantially. Now since the events are over, focus would again turn on the data and chart set-ups. FIIs who had rolled over significant short positions in the last week have reduced their net short positions and their ‘Long Short Ratio’ has improved from about 22 percent to 30 percent. Technically, the RSI readings on the daily charts have given a positive crossover which is a bullish sign. However, 21800-21850 remains an important resistance zone for the Nifty index which needs to be surpassed for a resumption of the uptrend. Until the index takes out this hurdle, we might see some consolidation or a time-wise corrective phase. Above this resistance, Nifty would have potential to rally towards the previous highs. On the flipside, 21450 followed by 21300 are the immediate short term supports.

No major movement seen on event day, INDIA VIX drops 10 percent

Nifty, Bank Nifty Levels and FINNIFTY Levels:

	Nifty Levels	Bank Nifty Levels	FINNIFTY Levels
Support 1	21550	45800	20390
Support 2	21450	45400	20260
Resistance 1	21830	46450	20700
Resistance 2	21970	46700	20820

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