Market Outlook for 08 February 2024

Nifty traded in a narrow range in Wednesday’s session as it seemed that traders are awaiting for the RBI Policy outcome which is scheduled on Thursday. The index ended the day near the previous days’ close.

Nifty Today:

In the last few days, Nifty has traded within a broad range where 22127 has seen resistance as it coincided with the previous swing high of mid-January and that hurdle has not been taken out yet. On the other hand, the 20 DEMA which is placed around 21660 is the important support to watch. FIIs have covered some of their short positions in the index futures segment which were short heavy at the start of the series. However, around 63 percent of their positions are still on the short side. It seems that the index is in a consolidation phase and awaiting a breakout from the range of 22127-21660 for any directional move. The reaction post the RBI policy will be important to watch as a breakout on either side of the above mentioned range will signal the next directional move. Traders are advised to stay cautious for now and trade in the direction of the breakout.

                             Traders awaiting RBI policy outcome, 22127-21660 seen as trading range

Nifty, Bank Nifty Levels and  FINNIFTY Levels: