Tuesday, November 1, 2022

NIFTY BANKNIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 2 NOVEMBER 2022

On Tuesday, November 1, 2022 Equity markets closed on a strong footing ahead of the Federal Reserve's crucial FOMC meeting, which begins later in the day. Nifty managed a comfortable close above 18000, a level it reclaimed after 48 days on Monday. This was the fourth consecutive positive close for Sensex and Nifty. Indian markets closed strongly on Tuesday, helped by strong action in pharmaceutical and IT stocks. The benchmark BSE Sensex indices closed at 61121, up almost 374 points. Meanwhile, Nifty was trading at 18145, up 133 points. Markets were volatile as the session witnessed a tussle between bulls and bears, with the former outperforming the latter. The India VIX, a measure of Nifty's volatility, rose over 2% to 16.13. Our market saw an opening gap for the second straight day of the week and continued its journey north. The optimism on the global stock exchanges and the broad interest in buying has given our market a boost. The benchmark index Nifty50 surged higher for a fourth straight session to break the previous swing high and maintained its positive stature, posting a gain of over seven-tenths of a percent to settle a little below the 18150 level . The bulls have taken complete control of the market and are very adamant about allowing any correction as the intraday decline bodes well for the bulls. The broad-based buying has also boosted positive sentiment among participants, which is evident on the technical chart. As we cleared the major hurdle of 18100, the market turned firmly bullish. As for the levels, the support has been moved to the odd 18000-17800 area which is expected to cushion any near-term dip in the market. On the contrary, a decisive close above 18250 could trigger a new rally in the index in a similar period. Looking at recent developments, the undertone is likely to remain in favor of the bulls, with clear traction seen outside of indices. In the meantime, many stock-specific adjustments are likely to continue and are expected to provide significant trading opportunities. Traders are therefore advised to take an equity-oriented approach and keep up to date with global developments ahead of the Fed's policy outcome.

 Resistance: 17350, 17450, 17550

Support: 17250, 17150, 17050 

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