By Ravi Singh
Indian equity markets ended the week on a negative note, with benchmark indices reflecting investor caution due to domestic and global headwinds. The Nifty 50 registered a significant decline, while the Sensex saw moderate losses. Market sentiment was weighed down by weak performances in the Oil & Gas, Energy, and Metals sectors, while IT stocks remained largely neutral.
In the derivatives market, the Nifty November monthly options show concentrated open interest at 26,000 CE (approximately 38 million contracts) and 23,000 PE (about 45 million contracts), indicating a broad trading range as traders position for the series expiry.
FIIs continued their selling, with net outflows of Rs 31,528 crore in November to date, adding to the liquidity pressures. On the other hand, DIIs remained selective, providing limited support to the indices.
Looking ahead, key drivers for market direction include upcoming jobless data, crude oil price trends, and global economic cues. While short-term outlooks carry an optimistic undertone, persistent volatility remains a concern as investors weigh macroeconomic challenges.
Key Levels to Watch
Nifty 50: Until the index trades below the 24,000–24,250 zone on a spot basis, the trend remains in a “Sell on Rise” mode. Strong resistance is expected in this range, with immediate support at 23,350–23,200. For the week, Nifty is expected to trade between 24,200 and 22,800.
Bank Nifty: Support levels are seen at 49,800–50,000, with an anticipated trading range of 49,000–51,200. A sustained break above 51,500 could signal a potential trend reversal and provide opportunities for long positions.
Nifty Weekly Strategy: Bear Put Spread
Buy 23450 Put at 109
Sell 23250 Put at 42
Spread 67 Stoploss 15 Target 138
(Disclaimer: Ravi Singh is the Senior Vice President of Retail Research at Religare Broking Limited. Views, recommendations, opinions expressed are personal and do not reflect the official position or policy of Financial Express Online. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.)
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