The global markets are currently in a state of mixed trading after last week’s rally. The Nifty, a major domestic index, experienced a lackluster session and closed with a marginal loss of 38 points at 19,694 levels. The majority of sectors ended in the red, primarily due to profit booking in index heavyweights. Notably, there was continued weakness in financial stocks for the second consecutive day following the Reserve Bank of India’s tightening of norms for consumer credit.
Looking at the outlook for the Nifty 50 today, technical research analyst Nagaraj Shetti highlights that the short-term trend remains range-bound. He suggests that there may be further consolidation or minor weakness in the short term before an upside bounce from the lows. The immediate support level is placed around 19,600 to 19,550 levels.
On the other hand, the Bank Nifty has formed a doji candle on the daily chart, indicating indecision in the market. Ashwin Ramani, a derivatives and technical analyst, notes that both call and put writers battled it out at the maximum put open interest strike of 43,500, with the put writers winning by a narrow margin. For Bank Nifty to continue its uptrend, it needs to successfully close above the key hurdle of 43,800. The Bank Nifty closed just 1 point higher at 43,585.
Analyst Siddhartha Khemka provides an overall market outlook, stating that the market is likely to consolidate within a range as the focus shifts to the US Federal Open Market Committee (FOMC) meeting minutes, to be released on Wednesday. Additionally, global participation may be lower due to the Thanksgiving holiday on Thursday. Investors will also be keeping an eye on US existing home sales data, scheduled for release on Tuesday.
Frequently Asked Questions
What caused the marginal loss in the Nifty?
The Nifty experienced a marginal loss primarily due to profit booking in index heavyweights and continued weakness in financial stocks following tightened norms for consumer credit by the Reserve Bank of India.
What is the short-term trend for the Nifty?
The short-term trend for the Nifty remains range-bound. There is a possibility of further consolidation or minor weakness before an upside bounce from the lows. The immediate support levels are around 19,600 to 19,550.
What is the key hurdle for the Bank Nifty?
The key hurdle for the Bank Nifty is at 43,800. A successful close above this level is likely to continue the uptrend.
What market events should investors watch out for?
Investors should keep an eye on the US FOMC meeting minutes, which will be released on Wednesday. Global participation may be lower due to the Thanksgiving holiday on Thursday. Investors will also be interested in the US existing home sales data, scheduled for release on Tuesday.