Market Outlook for 07 December 2023

Nifty started another session on a positive note around 20950 mark. However, the index consolidated within a narrow range for the entire session as no support was seen from the banking index, and the Nifty ended around the opening levels posting gains of less than half a percent.

Nifty Today:

Nifty continued its positive momentum for the seventh consecutive session as the index has not broken its previous sessions low in these days. FII’s have been buying in the cash segment and have added long positions in the index futures segment too in last couple of sessions. Thus, the uptrend remains intact with no signs of reversal yet. However, as the index moves higher without any dip, the momentum readings get overbought which increases the risk of a corrective phase as well. The RSI oscillator is in the overbought zone and the resistance for the index as per the retracement level (161.8 percent retracement of previous correction) is seen around 21077. Thus, traders should now be very stock specific and lower fresh exposure for the short term. Infact, as the index approaches higher levels it would also be a good approach to start booking profits and take some money off the table. Buying on dips when the overbought readings cools-off will be a better strategy rather than chasing at higher levels.The immediate near term support for Nifty are now placed around 20760 and 20550.

Nifty continues to march higher, approaching 21000

Nifty, Bank Nifty Levels and  FINNIFTY Levels: