Pre-Market View 21 November 2022 (Spot Levels)*
● After 3-4 days of consolidation, *US Equity Markets on Friday ended with gains of 0.5% gains.*
● *Dollar Index* is trading stable at 107 levels with *US 10 Year Bond yields* stable at 3.8% for the last few sessions leading to some stability in *USDINR* at 81.4-81.6 levels. However it is the *fall in Brent Crude prices* upto 86-87$ which will be a positive trigger for a lot of Emerging Economies including India.
● *Index on Friday* witnessed resistance at higher levels around 18400 & retested supports at 18200 before finally rebounding and closing at 18305 down 0.2% for the day. It is the *6th Day of consolidation wherein Nifty has traded in a 1% range of 18200 to 18420.*
● Despite the Index clinging to 18200 levels, there is a *loss of momentum witnessed across the broader markets with mid-cap & small-cap indices clearly not participating in the move* and registering losses for the past couple of weeks where Index had been steadily moving up. This shows that the rally is concentrated on the back of few select stocks & participation from the broad-based spectrum needs to be witnessed for the stability of the rally.
● *India VIX is currently stable around 14.5 levels,* however one should start getting cautious if India VIX sustains above 15.75. Any cool off below 14 will act as a big comfort factor for the bulls at higher levels.
● *For the day,* expect Index to take support at 18190-18210 zone and till it holds, expect market to rebound towards 18390-18410.
● Above 18420, the rally could extend upto 18490-18520 zone.
● Breach of Support at 18190 zone will lead to a retest of 18215-18185 area.
● *On the Derivative Data Front,* on higher side Call Addition witnessed in 18300, 18400 & 18500 strikes while of 18300-18200 Put Strikes witnessed aggressive additions which implies that market will get strong support on dips around 18190-18210 and resistance at 18430 followed by 18510 zones.
● *Despite consolidation at higher levels, Bank Nifty is now comfortably trading above the previous All Time Highs of 41829 for past 6 sessions defending support zone at 42000.*
● Overall Trend is Positive & Till support zone of 42100-42150 holds, further upmove towards 42800-42900 zones can be witnessed.
● A breach below 42100, Bank Nifty can retest support levels of 41800-41600.
● Expected Range for Bank Nifty 42100 to 42950
● *Sectorially IT, Capital Goods, Metals, Banks (Private & PSU), Realty and Railways are showing signs of a relative Outperformance against Nifty 500 while Power, Auto, Pharma & Media sector are seen underperforming the broader Markets.*
*Key Technical Levels for
*Nifty Close* – 18308
*20 DMA* – 18050
*50 DMA* – 17665
*100 DMA* – 17265
*200 DMA* – 17019
*Bank Nifty Close* – 42437
*20 DMA* – 41442
*50 DMA* – 40378
*100 DMA* – 38567
*200 DMA* – 37204#NIFTY50 #NIFTYBANK #MacroEconomy#CRUDEOIL