Nifty Outlook - 3 Nov-2022

Nifty started Wednesday’s session marginally positive, but the indices cooled-off a bit ahead of the global event and consolidated within a narrow range to end the day with a loss of about one-third of a percent.

Nifty Today:

Nifty has rallied around 1000 points in last one month and the markets are now awaiting the outcome of the US FED meeting and its impact on the global markets. The short term trend for Nifty remains positive as of now, but since our market as well as the global markets have already rallied ahead of the FED event, the outcome of the event is likely to have a significant impact in the near term. The immediate supports for Nifty are placed around 17970 and 17850 and if the event turns positive for the markets, then it will continue this rally towards 18300-18400. The options writers have positioned themselves in anticipation of an upmove as the 18000 put options have decent open interest outstanding. So in case there’s any negative reaction in global markets post the FED commentary, then the option writers will look to cover their positions which would lead to some correction and retracement of the recent upmove. In such case, if Nifty breaks 17900 then it could retrace back towards the 20-day EMA which is placed around 17630. Both the above scenarios remains open and hence, the opening for the markets will be crucial to determine the near term trend.

Global event to dictate the near term trend for the market

According to the levels mentioned above, traders should look to position themselves and trade with proper risk management. 

Nifty & Bank Nifty Levels: