Market Outlook for 11 October 2023
Post the sell-off in Monday’s session on negative geopolitical developments globally, the markets witnessed a sharp recovery in Tuesday’s session and rallied higher. The index reclaimed 19700 mark and ended just below it with gains of almost a percent.
The last couple of sessions have been topsy-turvy for the markets as the markets reacted negative initially to the negative global news. However, as the other markets did not react much negatively, we witnessed a pullback move again on Tuesday and infact the markets rallied to end on a strong note. Nifty had a support in the range of 19500-19450 and the index has exactly formed a low in this zone on Monday. Now, with recovery in the markets, the options writers have formed positions at 19600 strike which now has the highest open interest. Thus, 19600 followed by 19500-19450 have become the immediate supports for the index. On the higher side, the index has managed to end on a strong note and a follow up move above 19770 could lead to a resumption of the uptrend then. The RSI Smoothed oscillator which last gave a negative crossover on a breakdown below 20000 has now given a buy crossover in Tuesday’s session, thus turning the momentum positive. Also, FIIs have significant short positions in the system and a move above 19770 could lead to short covering by them as well.
Nifty recovers to reclaim 19700, short covering could lift markets higher
The Midcap index has gone through a time wise corrective phase in last one month. The 40 DEMA support is still intact which is placed around 39500. Till this is intact, the broader markets could witness stock specific positive momentum
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