Weekly Market Outlook for 30 October to 3 November
In the week gone by, our markets corrected sharply led by negative global news flows and FII’s selling. Nifty corrected upto 18850 on the October series monthly expiry day, but managed to recover on the last trading session of the week and ended above 19000 with a weekly loss of over two and a half percent.
Nifty witnessed the steepest weekly correction since the month of April as the down move was led by the broader market correction. The midcap and the small cap stocks which had rallied significantly in last few months too witnessed a sell-off during the week. Technically, the momentum readings were in oversold zone in Nifty as the index breached 18900 mark and this led to a pullback move in Friday’s trading session. However, since the RSI oscillator has given a negative crossover on the short term as well as the medium term charts, the Friday’s move should be seen as a pullback move only for now. FIIs have rolled over significant short positions to the November series and have short heavy positions. A move above 19100 could lead to some short covering upto 19220 and 19300 in the coming week which would be immediate resistances to watch for. On the lower side, 18900-18800 would now be seen as the immediate support and if this zone is breached, then the down move would extend. Since the global news flows had a significant impact off late, the short term momentum in the markets is likely to be driven by such news flows. We advise traders to avoid aggressive buying near the mentioned resistance levels. It would be better to trade with a stock specific approach for a while and keep a close tab markets reactions around the mentioned levels.
Nifty recovers from lows, but not out of the woods yet
The Midcap and the Small cap indices corrected sharply but have managed to form low around their 100-day EMA. Last Thursday’s low shall be important support levels for the near term and one shall trade with a stock specific approach in this space.
|Nifty Levels||Bank Nifty Levels||FINNIFTY Levels|
DisclaimerInvestment/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.
Copper prices saw a modest 0.33% gain, reaching 722 on Thursday, as worries about a slowdown in Chinese manufacturing loomed large. The November's NBS Manufacturing PMI slipped to 49.4, the second consecutive monthly decline, heightened concerns, emphasizing the need for additional government support to fortify China's economic growth. The NBS Non-Manufacturing PMI at 50.2, reflecting the 11th month of service sector expansion, hinted at a softer pace.
- Dec 01, 2023Read More
Our markets started the truncated week on a positive note and it rallied higher throughout the week. The first day of the December month infact witnessed a new record as the Nifty surpassed its previous high and ended in uncharted territory above 20250 with weekly gains of almost two and a half percent.
- Dec 01, 2023Read More