Market Outlook for 11 January 2024

The Nifty index traded in a narrow range till noon on Wednesday. However, the index took support around 21500 and witnessed buying momentum in the later part of the day to close above 21600.

Nifty Today:

Nifty has seen some correction in last few days where it corrected from 21800 to around 21500. However, we have neither seen a broad market sell-off nor any significant short formations in the derivatives segment. Thus, this seems to a regular correction in an uptrend as the RSI readings on the daily chart were in the overbought zone. Now in last couple of sessions, the index has managed to form a support around 21500 level, where the put writers too now have highest positions. The index heavyweight Reliance Ind led the pullback move in Wednesday's session which is a good sign. So till this support of 21500 remains intact on closing basis, it's better to stay with the broader trend and look for buying opportunities on intraday declines. The immediate support for the Nifty index is placed around 21500 followed by 21400-21370 range. On the flipside, the immediate resistance is around 21700 followed by 21800.

Amongst the sectoral indices, the Nifty Media index have given a breakout from a long consolidation phase and thus, stocks from this sector could see an outperformance in the short term. The IT heavyweights such as INFY and TCS will be declaring their quarterly results post market hours on Thursday which could be the trigger for momentum in the IT stocks.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: