NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 24 OCTOBER TO 28 OCT 2022

WEEKLY RESISTANCE FOR NIFTY: 17600, 17800, 18000

PIVOT POINT: 17400

WEEKLY SUPPORT FOR NIFTY:  17200, 17000, 16800

WEEKLY CHART FOR NIFTY

There were not many fireworks on the Dalal Street on the eve of Diwali, but the only solace was that the markets managed to extend their winning run on the bourses, overcoming a small hiccup in late trades when volatility came into play for a short period.  Our markets once again shrugged of negativity from the global peers as we started the week on a flat note (with mild losses) Monday 18 October 2022 morning. After the initial trades, a strong buying emerged across the board to enter the positive terrain first. The banking space led from the front as they not only managed to pull markets from key supports but also kept propelling higher as the day progressed. With some sustained buying throughout the remaining part of the session, Nifty eventually concluded the session tad above 17300 by adding more than seven tenths of a percent to the bulls’ kitty.  Globally, the tide seems to have turned upwards and hence, we being the stronger markets have started reaping the benefits of the improved sentiments. Our benchmark index started the Tuesday 19 October 2022 session with a decent bump up above the 17400 mark. In the initial hour, the gains extended to surpass 17500 by a small margin. Thereafter, we witnessed consolidation for the remaining part of the session as Nifty kept oscillating within the range of opening hour candle i.e. merely 90 points. Eventually, Nifty concluded the session tad below 17500 by adding a percent to the previous close. For the second consecutive session on 19 October 2022 , our markets witnessed a healthy gap-up opening, courtesy to an extended rebound in US bourses. In the initial hour, Nifty hastened towards 17600; but traders chose to take some money off the table there, and hence, we witnessed a gradual decline for the major part of the session. Due to last hour extended selling, Nifty ended the session tad above 17500 by restricting the gains to not even two-tenths of a percent. On 20 October 2022 Thursday morning, the global markets looked a bit sluggish and hence, indicated a weak opening for our market. We did open lower but not to the tune of what SGX was indicating. Nifty started the session slightly above 17400 and from there; the recovery took place in a gradual manner. However, as we stepped into the latter half of the session, the buying accelerated in some of the heavyweight spaces, which resulted in Nifty ending the session well inside the positive territory a tad above the 17550 mark. On 21 October 2022 Indian equity markets ended in green on a flat note on high volatility as weak global cues amid escalating crisis in Ukraine weighed on investor sentiment. BSE Sensex ended at 59307, up 104 points, while the broader Nifty50 closed at 17576, up 12 points.

NIFTY: STRONG SUPPORT& STRONG RESISTANCE LEVEL

Strong buying in banking stocks led to the recovery in markets. Technically, the Nifty successfully surpassed the 20 and 50 day SMA resistance mark which is largely positive. It has also formed a long bullish candle on weekly charts that suggest further uptrend from the current levels. For Nifty, 17450 and 17350 would act as key support zones. Above which, the index could move up to 17700-17900. On the flip side, if the index closes below 17450 or 50 day SMA mark, it could slip till 17350-17250.

TECHNICALLY SPEAKING

 On the technical front, the Nifty has formed a bullish candle on a weekly chart suggesting strength in the counter. The index has been trading above 21 DMA which adds bullishness to the prices. On the Open Interest Data, On the call side, the highest was witnessed at 17850 while on the put side was at 17450 level. The momentum indicator STOACHSTIC was trading with a positive crossover which suggests an upside moment in the upcoming session. The support for Nifty has shifted around 17350 levels while on the upside 17750 may act as an immediate hurdle. On the other hand, Bank Nifty has support at 40000 levels while resistance at 41000 levels. Overall, Nifty has given weekly closing above 17500 levels, which suggests strength in the counter.