Market Outlook for 06 March 2024

Nifty started Tuesday’s day marginally negative on back of negative cues from the global markets. However, amidst stock specific momentum on both sides, the index recovered from the intraday low of 22270 and ended the day above 22350 with a marginal loss.

Nifty Today:

Nifty witnessed some intraday correction due to global factors and profit booking in the IT heavyweights. However, as the overall trend remains positive, we have not seen any support getting breached and thus the overall uptrend remains intact. On the lower time frame charts, the index has support around 22270 which was respected in Tuesday’s session. Only if that is breached, then we can see some correction towards 22200 where next support is seen as per the options data.

Positionally, the 40 DEMA which has not been breached in the recent corrective phase is now placed around 21860 and thus the support base is gradually shifting higher. On the higher side, the resistance is seen around the 21500 mark followed by 21700. Traders are advised to continue to trade with a positive bias and look for buying opportunities on intraday declines. However, since the overall market breadth is not too strong, one should be very selective and sock picking and prefer to trade the outperformers rather than laggards.

                                          Nifty consolidates amidst stock specific momentum 

Nifty, Bank Nifty Levels and  FINNIFTY Levels: