Nifty Outlook - 4 Nov-2022

Nifty Outlook - 4 Nov-2022
Nifty Outlook - 4 Nov-2022

Market Outlook
by Ruchit Jain Last Updated: 2022-11-04T10:48:54+05:30

The US market corrected post the FED policy outcome and hence our markets too started the day on a 
negative note as indicated by the SGX Nifty. However, our markets recovered from the opening lows led 
by support from the banking space and Nifty ended the day marginally negative around 18050. 
 

Nifty Today:

 

Inspite of the negative global cues, our markets managed to hold well on the weekly expiry day as the options writers had significant positions built in the 18000 put and with the support of the banking index, the Nifty managed to defend this support. The short term trend for our markets is still intact as of now, but if take a glance at the US markets, then it seems that the Nasdaq Index has resumed its downtrend post a pullback move and it could even breach the recent swing lows going ahead. If such scenario happen, the the global equities too could then react negatively and hence, short term traders should be vigilant on the global cues going ahead. As far as our markets are concerned, 17950 is the immediate support for Nifty and a breakdown below the same could then lead to a corrective phase in the near term. Hence, traders with long positions should refer to this as a make or break level and position their trades accordingly. On the higher side, 18200 is the immediate resistance above which the index would then continue its momentum. 

 

Global event to dictate the near term trend for the market

 

Nifty holds 18000 on weekly expiry day, but global cues turn negative

 

Amongst sectoral indices, the IT space corrected as it has been following the Nasdaq index and negative cues from the later does not bode well for the near term. The Banking index showed relative outperformance in which, 40800 would be seen as the crucial support. Traders are advised to trade with a stock specific approach and lighten up longs if the key indices break the above mentioned crucial supports.  

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17970

40900

Support 2

17890

40540

Resistance 1

18120

41580

Resistance 2

18190

41860

 

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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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