Wednesday, October 23, 2013

Indian stock markets outlook for October 23, 2013

For Tuesday, October 22, 2013, the trend deciding point worked out at 6153 mark. Again, the weekly trend deciding point was also pegged at 6152 mark. Hence any fall in Nifty towards 6152-6153 mark was to offer a buying opportunity. However sustenance of this point needed to be ensured before creating a buying position. A strict stop loss of thirty points was a must for any buy. If for any reason, this level was breached, then the next support was expected to emerge at 6080 mark. But going by the trend for Tuesday, it seemed difficult for Nifty to touch 6080 on Tuesday. Again, the intermediate support also existed at 6202, in case if there is not much selling pressure. On the upside, the first weekly resistance of 6246 could have been easily crossed, as it was very near to the close of Monday at 6236 mark and a slightly strong buying could have helped it to be crossed. If this was crossed due to demand pressure, then the next resistance was expected to emerge around 6316 mark, the second weekly resistance. 

And on Tuesday, Nifty opened slightly negative and soon went up to touch the high of 6236 mark and thus could not cross the first weekly resistance of 6246 mark. Fresh selling pressure here pushed Nifty down to touch the low of 6197.30. This point was close to the intermediate support of 6202 mark. After moving sideways for the major part, it was towards the end of the session that some buying pushed Nifty upward to close at 6227.

For Wednesday, October 23, 2013, the trend deciding point emerges at 6163 mark. While the weekly trend deciding point is at 6152. Thus, any fall in Nifty towards 6163-6152 mark is to offer a buying opportunity. However sustenance of this point is needed to be ensured before creating a buying position. A strict stop loss of thirty points is a must for any buy. If by any chance there is not much selling pressure, then the intermediate level of 6205-6210 itself will offer a support. The direction of the market will depend on the September Job data to be released today in US. On the upside, the level of 6246 will offer a resistance. If this is crossed, then the second weekly resistance of 6316 will become the target.


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