Market Outlook for 02 February 2024

Market Outlook for 02 February 2024
Market Outlook for 02 February 2024

by Ruchit Jain Last Updated: Feb 28, 2024 - 03:58 pm 764 Views
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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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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.


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