Market Outlook for 18 October 2023

Market Outlook 18 October 2023

by Ruchit Jain Last Updated: Oct 18, 2023 - 10:56 am 602 Views
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Nifty started the day on a positive note on the back of positive global cues. The index then traded within a range and ended the day above 19800 with gains of about half a percent.

Nifty Today:

Our market has been gradually moving higher and is forming a higher support base with the upmove. The recent swing low at 19635 is now seen as the important support and the index is trading around the hurdle of 19850-19880 which is the 61.8 percent retracement of the recent correction. Also, the Bank Nifty index has been consolidating in a range since last couple of weeks where a trendline resistance is seen around 44600 level. A breakout above the mentioned resistances in both the indices could lead to a directional upmove and hence, short term traders can look for buying opportunities above these levels. Although FIIs have not been forming fresh short positions now, much of their short positions formed at the start of this series are still intact as their ‘Long Short Ratio’ is around 27 percent only. If the indices breach the mentioned resistances, then there could be short covering of these positions which would then provide support to the ongoing momentum. 

Slow and gradual upmove in Nifty, overall market breadth healthy

Market Outlook Graph 17-October-2023

The broader markets have been doing well as the overall market breadth is healthy. Traders should continue to look for stock specific buying opportunities and trade with a positive bias until the index breaks the important supports.

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

  Nifty Levels Bank Nifty Levels FINNIFTY Levels
Support 1 19750 44230 19840
Support 2 19700 44050 19750
Resistance 1 19880 44600 20020
Resistance 2 19935 44780 20080

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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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