Market Outlook for 21 November 2023
Nifty started the week on a flat note and the key indices traded within a narrow range throughout the day. Nifty ended the day just below 19700 with a minor loss while the Bank Nifty index ended on a flat note.
It was a day of consolidation for the index, but stock specific movement kept the market momentum intact. The Midcap and the Small Cap index posted minor gains and continued to mark new highs, but the momentum readings on the lower time frame charts here are highly overbought and hence, risk rewards ratio doesn’t seem to be much favorable for long formation here. The important supports for Nifty are still intact where 19640 will be seen as immediate support followed by positional support around 19480. On the higher side, 19800-19850 is the important resistance zone where the Nifty resisted in the month of October too. In the weekly options segment too, 19800 call option has the highest open interest outstanding indicating option sellers concentration at this hurdle. FII’s still have significant short positions intact as they have not unwound much of their short positions in the recent upmove.
Nifty consolidates in a range amidst stock specific momentum
The above data indicates probability of some consolidation in the index in the short term. Thus, traders should focus on stock specific momentum at the moment until we see a breakout from the range.
|Nifty Levels||Bank Nifty Levels||FINNIFTY Levels|
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