Market Outlook for 18 May 2024

Post the sharp pullback move on the expiry day, Nifty continued its momentum on Friday and it tested 22500 mark. The index ended the day just below this level with gains of over a quarter of a percent.

Post the sharp pullback move on the expiry day, Nifty continued its momentum on Friday and it tested 22500 mark. The index ended the day just below this level with gains of over a quarter of a percent.

The index witnessed a modest upmove in Friday’s session, but the broader markets rallied sharply as stock specific buying was seen and the market breadth was healthy. The RSI on the daily and the hourly charts are positive indicating a positive momentum and post the recent volatility, it seems the market is geared to continue its uptrend. FIIs have significant short positions in the system which too could come to cover if the markets continue the strength. Hence, traders are advised to trade with a positive bias and look for buying opportunities on intraday declines. The immediate support for Nifty is now placed around 22300 level.

Certain sectors such as defence, railways and the PSU stocks have witnessed good buying interest in last couple of sessions. Since many stocks have seen a time wise correction in last couple of months, we could see outperformance again in such themes. Hence, traders can look for stock specific buying opportunities in such outperforming counters.
 

                                        Modest gains for Nifty while PSU stocks regain momentum

Nifty, Bank Nifty Levels and  FINNIFTY Levels: