Market Outlook for 19th January 2024

Nifty started another session on a negative note and it sneaked below 21300 mark in the first hour of the trade. However, the index recovered some of the losses and it then consolidated in the range of 21400-21500 for most part of the day and ended with a loss of half a percent.

Nifty Today:

The markets have seen a sharp correction in last three sessions as the benchmark index saw decline due to selling in some heavyweights. In this down move, the index has given a breakdown from a Rising Channel and the RSI oscillator on the daily chart have given a negative crossover post showing a negative divergence, which hints at a loss of momentum in the index. The data has also turned a bit negative as the FII’s have sold heavily in the cash segment and have reduced net long positions in the index futures segment from 64 percent to 54 percent. The lower time frame charts are oversold and thus we could see some pullback move, but it is likely that the index would see selling pressure at higher levels. Hence, it is advisable to be stock specific from a short term perspective and be cautious at higher levels. The immediate hurdle on pullback would be seen in the range of 21650-21700 while the supports are placed around 21300 followed 21180.

                                                      FIIs reduces net long positions in index futures

Nifty, Bank Nifty Levels and  FINNIFTY Levels: