Weekly Market Outlook for 31 Oct to 4 Nov

Weekly Market Outlook for 31 Oct to 4 Nov
Weekly Market Outlook for 31 Oct to 4 Nov

Market Outlook
by Ruchit Jain Last Updated: 2022-10-31T12:26:35+05:30

After the F&O expiry session, Nifty started trading for the day on a flat day and consolidated within a narrow range throughout the day. However, the banking space witnessed selling pressure due to which divergence was seen in the Bank Nifty index on Friday. Nifty ended the day tad below 17800 with marginal gains while the Bank Nifty index posted a loss of over 300 points on Friday.

 

Nifty Today:

 

Nifty index consolidated within a range in the truncated week wherein the index oscillated within a range of 200 points of 17640-17840. It could just be seen as a consolidation or a time wise correction after the recent rally from 17000 to 17800. Now, there was some divergence seen in the banking index in Friday’s session as the banking space witnessed some selling pressure. However, the short term trend for both the indices still remains positive as they have not breached their important supports. So inspite of this one day's divergence, we would see how the follow up move pans out in the coming week and until the index breaks any crucial supports or there’s change in data, one should trade with a positive bias. FII’s have started the November F&O series with net long positions (Long Short Ratio at 59%) and the Dollar Index too has cooled- off recently which is supportive for equity markets. Hence, from a positional perspective, the near term trend continues to be positive as of now and hence, one should look for buying opportunities. The market breadth, however, has not been robust as the Midcap and the Small cap index has not seen any positive momentum. So traders need to be selective in their stock specific approach and look for opportunities in sectors which are showing outperformance. 

 

Divergence seen in Nifty and Bank Nifty, but trend remains positive till supports are intact

 

Market cools-off ahead of mid-week holiday, global cues to dictate short term trend

 

The near term supports for Nifty are placed around 17650 and 17470 which would be the crucial levels to watch out for. On the flipside, if the index resumes its upmove from this one week of consolidation then it could rally towards 18000-18100 in the near term. Amongst sectoral indices - Auto, Energy, and Infrastructure are showing positive signs on charts and thus, traders should look for buying opportunities in stocks from these sectors from a short term trading perspective.

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17650

40725

Support 2

17470

40460

Resistance 1

17900

41370

Resistance 2

18000

41750

 

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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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