Market Outlook for 16 February 2024

Nifty carried forward the previous day’s momentum and rallied higher on the weekly expiry day. The Nifty index surpassed 21900 mark and ended above it with gains of about one-third of a percent.

Nifty Today:

Nifty has rebounded sharply from Wednesday’s low of 21530 and is now again on the verge of reclaiming the 22000 mark. The index has gone through a time-wise corrective phase where the swing low of 21530 almost coincides with the 40 DEMA support, and the swing high at 22127 is the immediate resistance. A breakout beyond the same will then lead to a directional move in the index. However, amidst this consolidation in the index, the stock specific momentum continues to be robust, especially the PSU stocks which have rallied sharply post a small corrective phase and some of them have even formed new highs. Thus, until the index gives a breakout on either side, it is better to trade with a stock specific approach and look for stocks which are outperforming with high volumes. The immediate support for Nifty is placed in the range of 21800-21750 followed by the swing low at 21530. 

                                             PSU stocks continue to outperform the broader markets

Nifty, Bank Nifty Levels and  FINNIFTY Levels: