Stock in Action: Cipla Ltd 31 October 2024
Weekly Market Outlook for 13 May to 17 May
Last Updated: 13th May 2024 - 09:49 am
Our markets corrected sharply in last one week owing to nervousness amongst market participants due to rising volatility and selling by FIIs. The index sneaked below 22000 level on Thursday, but managed to end the week tab above it with a weekly loss of almost a couple of percent.
The rise in the volatility index due to ongoing general elections resulted in nervousness amongst market participants which resulted in a sharp correction in the markets. Also, FIIs have been sellers in the cash segment and they formed short positions in the index futures segment too. Generally, whenever they sell aggressively in both the segments markets tend to go through some price wise correction. Now the index has been trading in a rising channel and prices have now approached the lower end of the channel. The index has support in around 21900-21850 which if broken, then it could lead to further price wise correction. The RSI on the daily and the weekly charts are negative and till we see any reversal in them, there could be selling pressure on pullback moves. In the coming week, 22230 followed by 22330 will be seen as immediate resistances while 21900-21850 will be the sacrosanct support. If this is breached, then we could see corrections towards support of 22700 and 22470. On Friday, we did see some pullback and the above mentioned support is intact. But it’s too early to predict if the index is near a bottom as the volatility index remains on its toes. Hence, we advise traders to avoid aggressive bets in such volatile phases and trade with limited exposure till the tide reverses again.
Nifty turns lower ahead of weak global cues
Therefore, traders are advised to focus on stock-specific actions and keep an eye on the development of option chain data, earnings numbers, as well as global events such as geopolitical tensions, the dollar index, bond yield movements, and commodity prices.
Nifty, Bank Nifty Levels and FINNIFTY Levels:
NIFTY Levels | SENSEX Levels | BANKNIFTY Levels | FINNIFTY Levels | |
Support 1 | 21900 | 72300 | 47200 | 20980 |
Support 2 | 21850 | 72000 | 46980 | 20870 |
Resistance 1 | 22220 | 73000 | 47750 | 21380 |
Resistance 2 | 22320 | 73300 | 48100 | 21500 |
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