Weekly Market Outlook for 24 Oct to 28 Oct

Weekly Market Outlook for 24 Oct to 28 Oct
Weekly Market Outlook for 24 Oct to 28 Oct

Market Outlook
by Ruchit Jain Last Updated: 2022-10-25T11:25:45+05:30

Although the market started the week marginally negative, it recovered and rallied higher gradually throughout the week. The Banking space took the charge towards the end post good quarterly results from Axis Bank due to which, Bank Nifty posted weekly gains of four percent while Nifty ended the week tad below 17600 with weekly gains of over a couple of percent.
 

Nifty Today:

 

The equity markets witnessed a good buying interest in last couple of weeks after forming a support base around the 17000 mark. The currency depreciation is usually considered as negative for equity markets but this time inspite of INR breaching the 83 mark, Nifty is still well above its swing lows which indicates a positive divergence and buying interest in equities. However, towards the end of the week, the market breadth weakened as the declines outnumbered the advances on Friday as thus the midcap index ended the red. Infact in this upmove from 17000 to 17600, there has been less participation from the midcap basket and large caps such as banking and finance has led the move. Looking at the chart structure, the short term momentum still seems to be positive, and until the index breaks any important supports traders should continue to trade with a positive bias and look for buying opportunities on declines. But one be very stock specific in selecting stocks for trading and avoid ones which are underperforming.

 

Nifty keeps short term momentum intact; Banking outperforms

 

Nifty keeps short term momentum intact; Banking outperforms

 

The immediate supports for Nifty are placed around 17460 and 17340 and close below these supports will then lead to a break in momentum where should again reassess the charts. On the flipside, 17700-17800 will be seen as the immediate resistance zone for the index.  

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17460

40350

Support 2

17340

40100

Resistance 1

17700

41250

Resistance 2

17800

41500

 

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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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