Markets corrected sharply amid negative global cues

Weekly F&O Data

by 5paisa Research Team Last Updated: Oct 23, 2023 - 05:47 pm 324 Views
Listen icon

Nifty50 23.10.23.jpeg

Our markets corrected sharply in the first trading session of the week as the negative global cues continued to weigh negatively. The Nifty broke its important supports one after another as the broader markets witnessed significant selling pressure and the index ended the day below 19300 with a loss of over 250 points.

The week started with a continuation of the corrective phase, but this time it was not only the benchmark index but the broader markets (midcaps and small caps) too witnessed selling pressure. Nifty broke its important swing low support of 19330 and ended well below it. However, the data was already bearish for some time as the recent pullback move did not see any significant short covering or long formations. The short positions by FIIs are intact in the system with around 75 percent positions on the short side. The RSI oscillator gave a negative crossover in Nifty last week hinting at losing momentum. In the options segment, option writers have formed positions in 19400-19600 strikes while the highest open interest amongst puts is placed at 19000 strikes. Thus, until the data changes, we continue with our cautious approach to the market and advise short-term traders to avoid aggressive trades. The major support zone for Nifty is now placed in the 19000-18900 range and in case the index approaches this zone then one can look for some contra trades. On the higher side, 19400-19500 will now be seen as the immediate resistance zone on any pullback moves.

Frequently Asked Questions

How do you rate this blog?


Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage


About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Weekly Wrap-up: Tata Tech's Dazzling IPO Debut & the Tax Tale

In the heart of the bustling Indian stock market, a tale of triumph unfolded on November 30th, as Tata Technologies made an awe-inspiring debut. The curtains lifted at ₹1,200 apiece on the National Stock Exchange (NSE), casting a premium spell of 140% over the issue price of ₹500 per share. This stellar entry marked the grandest listing since November 2021, echoing through the financial corridors with waves of excitement.

Stock In Action: JSW Steel

Movement of the Day Analysis 1.    Strengths: Strong Momentum: Price above short, medium and long term from 5 days to 200 days respectively. 2.    Positive break-out. 

Swing Trading Stocks: Week of 11 December 2023

Swing Trading Stocks for the Week