Market Outlook for 27 October 2023
Nifty started another session on a negative note and breached the 19000 mark at opening. It traded with a negative bias throughout the day and ended around 18850 with a loss of more than 250 points.
The indices have continued its corrective phase and the benchmark index even broke the 19000 mark. However, the downmove was much on expected lines as the stronger hands remained on the short side throughout the October series and the negative news flows from the global markets weakened the momentum in the equity markets. Now, our markets have already corrected and the momentum readings on the lower time frame charts are in the oversold zone. Such oversold setups usually lead to a pullback move and hence, the indices could see an upmove in the short term from current levels. The market breadth improved from the morning lows on the expiry day indicating stock specific buying interest seen by market participants at lower levels. Both the Midcap as well as the Small Cap indices are trading around their crucial 100 DEMA support. Hence, we could see a pullback move in the index in the next couple of sessions and hence short term traders can look for buying opportunities here. However, it would be too early to predict the quantum of the upmove and hence, traders should keep a close tab on the data from the F&O segment at the start of the November series.
Nifty breaks 19000 mark, but momentum readings oversold
The important support as per technical analysis is placed in the range of 18800-18700 while on pullback moves, resistances will be seen around 19100 first and if that surpasses then around 19300.
|Nifty Levels||Bank Nifty Levels||FINNIFTY Levels|
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