Weekly Market Outlook for 17 Oct to 21 Oct

Weekly Market Outlook for 17 Oct to 21 Oct
Weekly Market Outlook for 17 Oct to 21 Oct

Market Outlook
by Ruchit Jain Last Updated: 2022-10-17T12:08:51+05:30

The sharp recovery in the US markets in Thursday’s session led to a gap up opening in our indices on the last trading session of the week. Nifty started above 17300 mark, but after consolidating at higher levels in the first half of the day it gave up some of the gains and ended the week below 17200 with gains of around a percent.

 

Nifty Today:

 

During the week, Nifty traded within a broad range but managed to form a support base in 17000-16900 zone. The index defended the ‘200 DEMA’ support and as the US indices were trading around their respective support, market participants were waiting for the global markets' reaction post their inflation data. Nasdaq showed a smart recovery around its 61.8 percent retracement support of its entire uptrend from the Covid lows to last year’s high. This indicates probability of a pullback move in the near term in the US markets which could have an impact on global equities as well. The Dollar Index too is showing signs of some consolidation. All these global factors hint at the possibility of a near term bounce in the equity markets and hence, we advise traders to trade with a positive bias till the important supports are intact. 

 

Recovery in US markets led to positivity in global equities

 

Recovery in US markets led to positivity in global equities

The immediate support for Nifty is placed in the range of 17000-16900 followed by the swing low of 16750. On the flipside, the immediate hurdle is seen around 17425 which is the swing high and the 50 percent retracement of the previous corrective move. Once this hurdle is surpassed, the index could test 17625 where traders should again reassess the markets.

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17000

39000

Support 2

16900

38520

Resistance 1

17350

39800

Resistance 2

17425

40210

 

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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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