Market Outlook for 31 January 2024

Market Outlook for 31 January 2024
Market Outlook for 31 January 2024

by Ruchit Jain Last Updated: Jan 31, 2024 - 11:10 am 745 Views
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Nifty started Tuesday’s session marginally positive, but it witnessed selling pressure from its resistance of 21800 and it corrected throughout the day to end marginally above 21200 with a loss of about a percent.

Nifty Today:

At the start of the week, Nifty witnessed a pullback move led by some of the index heavyweights, but selling pressure was seen as the index approached its resistance of 21800. Now, it we look at the data, FIIs have about 75 percent of the positions on the short side in the index futures segment and call writing was seen on Tuesday at 21700 strike as the index corrected. Also, the technical momentum oscillator RSI has a negative crossover on the hourly charts, while is already negative on the daily chart since last couple of weeks. Thus, the data is not positive and it indicates that until the index surpasses 21800 mark, we are not out of the woods yet and the volatility is likely to continue. During last week, the 40 DEMA acted as a support which is now placed at 21275. Thus, we expect the Nifty oscillate within this broad range and post the upcoming events (Interim Budget and FED policy outcome) on Thursday, we could see a trended phase. 

                          Rise in volatility ahead of the event, Nifty witness sell-off from resistance zone

Traders are advised to stay cautious considering the above data and the technical set ups and look to trade with a directional view only on breakout beyond the above mentioned range.

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

  Nifty Levels Bank Nifty Levels FINNIFTY Levels
Support 1 21400 45150 20200
Support 2 21300 44950 20100
Resistance 1 21620 45630 20420
Resistance 2 21700 45900 20550

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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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