Market Outlook for 27 February 2024

Market Outlook for 27 February 2024
Market Outlook for 27 February 2024

by Ruchit Jain Last Updated: Feb 27, 2024 - 10:43 am 431 Views
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Nifty started the week marginally negative and the index traded within a narrow range throughout the day. Amidst stock specific momentum, Nifty ended the day above 22100 with a loss of less than half a percent.

Nifty Today:

During last week, Nifty registered a new all-time high but momentum has been lacking since the midcap index has entered a consolidation phase. In Nifty, the recent up move has been because of some short covering and we have not seen significant long build up. FIIs have reduced some of their net short positions and their ‘Long Short Ratio’ now stands around 44 percent. In the options segment, the coming February series data hints at a support around 22000 mark, where high open interest of around 68 lakhs contracts is seen, while similar quantum of open interest is seen in 22200 and 22300 call options which seems to be the resistance zone. The 20 DEMA support is placed around 21930 and hence, looking at the data it seems that the index would consolidate within this broad range for now.

                                          Nifty consolidates in a range amidst stock specific action

 

Only if the index gives a breakout beyond the range, coupled with unwinding of positions in the above options would lead to a directional move before expiry. Hence, traders are advised to trade with a stock specific approach in the near term.

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

  Nifty Levels Bank Nifty Levels FINNIFTY Levels
Support 1 22000 46280 20500
Support 2 21930 46050 20420
Resistance 1 22200 46800 20700
Resistance 2 22300 47050 20780

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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.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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