Nifty Outlook - 13 Oct-2022

Nifty Outlook - 13 Oct-2022
Nifty Outlook - 13 Oct-2022

Market Outlook
by Ruchit Jain Last Updated: 2022-10-13T12:51:14+05:30

Post the last hour sell-off on Tuesday, Nifty started the session marginally positive above 17000. The index consolidated in a range in the first couple of hours and witnessed some support in the range of 17000-16950. The index then recovered from the lows and witnessed a positive momentum towards the end to close above 17100 with gains of eight-tenths of a percent.

 

Nifty Today:

 

Nifty has consolidated within a broad range in last couple of weeks. In this phase, the 200 DEMA has acted as a support and so far the index has managed to defend the same successfully. Apart from this moving average support, the option writers were seen building positions at 17000 put right from the open and the positions were intact inspite of the index sneaking below the 17000 mark. This indicated that the index is likely to hold on the support zone and thus we witnessed recovery in the later half. Now if we look at the global markets, the US indices are approaching their respective support zone and there’s a loss of selling momentum there which can be observed from divergences in the momentum readings. This opens up a possibility of a pullback move there and since our markets are also trading near the support, the near term pullback move is expected in our markets too. FII’s are short heavy in the index futures segment and any positive in the global bourses could lead to some short covering by them. Hence, traders should look for buying opportunities from a near term perspective. 

 

Nifty forming a support near 200 DEMA, possibility of a short term bounce open

Nifty forming a support near 200 DEMA, possibility of a short term bounce open

 

The immediate support for Nifty is placed in the range of 17000-16900 while resistance is seen around 17200. We anticipate the index could surpass this hurdle which could then lead the index towards the swing high of 17425 followed by 17625 in the near term.

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17000

38760

Support 2

16900

38500

Resistance 1

17260

39500

Resistance 2

17330

39600

 

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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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