Weekly Market Outlook for 16 October to 20 October

Weekly Market Outlook October 16th, 2023 - October 20th, 2023

by Ruchit Jain Last Updated: Oct 16, 2023 - 10:46 am 660 Views
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In the week gone by, Nifty traded within a range of 400 points but the index swayed on both the sides due to several news flows. The negative geopolitical news from Israel had an initial impact at the start of the week. Markets recovered from the lows but it again witnessed some correction towards the end of the week and finally Nifty ended around 19750 with weekly gains of half a percent.

Nifty Today:

The global news flows had a significant impact on our markets since the second half of September due to which our markets entered a corrective phase post forming high around 20200. However, post the initial price wise correction, the index recovered from the support of 19300 and then formed a higher support base at 19500-19450 range. FII had formed short positions at the start of the series, but have started covering some of their short positions now. But still more than 70 percent of their positions are on the short side and it needs to be seen if they cover further positions in the coming week. On the shorts, the RSI oscillator is hinting at a positive momentum on the daily chart and hence, till the above mentioned supports are intact, one should trade with a positive bias and look for buying opportunities on declines. While the immediate support base is placed at 19500-19450 range, the resistance is seen around 19850-19900. A move above this could then lead to a momentum towards new highs. 

Nifty forms a higher support base at 19500-19450

Market Outlook Graph 13-October-2023

There's a lot of stock specific action seen as the corporate announces their quarterly results. The Nifty midcap index has gone through a time-wise corrective phase in last one month and has not breached its 40 DEMA intact. This indicates that stock specific momentum is likely to provide better trading opportunities and hence, short term traders are advised to capitalize on the same.

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

  Nifty Levels Bank Nifty Levels FINNIFTY Levels
Support 1 19655 44000 19760
Support 2 19825 43780 19700
Resistance 1 19825 44500 19920
Resistance 2 19900 44710 20000

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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.


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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