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Business News/ Markets / Stock Markets/  Will Nifty be able to reclaim 18K next week? Key factors to watch
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Will Nifty be able to reclaim 18K next week? Key factors to watch

Stock market next week: Bank Nifty is facing resistance in the 41500–42000 zone while the 10-DMA around 40,800 is immediate support

Technically, the overall structure is bullish, but momentum is slowing down as the Nifty has multiple resistance levels between 17800 and 18100. (MINT)Premium
Technically, the overall structure is bullish, but momentum is slowing down as the Nifty has multiple resistance levels between 17800 and 18100. (MINT)

Indian equity market witnessed profit booking after Nifty crossed the 17800 level and the Bank Nifty also saw the profit booking at 41500 levels on Friday trading session while the US market has shown strength after good apple Results & weak homes sales number.

Global markets are in the brittle mode because everyone eyeing the outcome of the upcoming US FOMC meeting, which is scheduled on 2nd November 2022. US 10-year bond yields are also cooling off from 4.33% to 4.016%.

The stock market will also have an eye on the unscheduled RBI MPC meeting. We are heading toward the last batch of Q2 earnings, which will lead to stock-specific movement. October auto sales numbers will be important because they will tell us about festival demand.

Apart from this, the institutional flows will play a vital role because foreign investors have turned from sellers to buyers while Domestic institutional investors are also giving their participating on the positive side.

Technically, the overall structure is bullish, but momentum is slowing down as the Nifty has multiple resistance levels between 17800 and 18100. On the downside, 17600-17400 is a strong demand zone. The Nifty may remain volatile to sideways with a positive bias. However, sector and stock-specific outperformance are likely to continue.

Bank Nifty is facing resistance in the 41500–42000 zone while the 10-DMA around 40800 is immediate support. Below this, 40300–40000 will be the next support area. On the upside, if it manages to take out the 42000 level, then we can expect a move toward the 42500-43000 zone.

If we look at the derivative data, then FIIs are starting the November series with 57% long positions in index futures. The put-call ratio is at a 1.23 level. Overall, derivative data is indicating a neutral to positive bias, but the market won't have the support of short covering.

(Author is Senior Technical Analyst at Swastika Investmart. Views and recommendations made above are those of analyst's or broking companies, and not of Mint)

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Published: 29 Oct 2022, 12:45 PM IST
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