Market Outlook for 23 February 2024

Nifty witnessed a sharp correction during the opening hour on the weekly expiry day. The index sneaked below the 21900 mark, but it started recovering in the later part of the day and as it surpassed the 22000 mark, the momentum accelerated in the last hour of trade. The index rallied sharply to register a new high and end the day above 22200.

Nifty Today:

It was a volatile day for the markets as the indices traded with a negative bias to break the 21900 mark in the first hour. Just when it seemed that the bears are taking control and the there’s no follow up buying post the recent breakout, the index witnessed a sharp recovery in the later part of the day. Nifty surpassed the 22000 mark and broke above the resistances one after another which forced the call options writers to cover their positions.

Now as the momentum has regained, the bulls again have an upper hand and Thursday’s low also coincides with the 20 DEMA. The RSI oscillator on both hourly and the daily charts are positive and above the 70 mark which hints at a positive momentum. Thus, the average support of 21875 becomes a sacrosanct now and should now be referred as stop loss for long positions. On the higher side, a sustained move above 22250 could then lead the Nifty towards 22500.

                                             Nifty recovers from intraday lows and registered new high

Nifty, Bank Nifty Levels and  FINNIFTY Levels: