Market Outlook for 8 September 2023

Nifty started the day on a flat note and witnessed some hurdle around 19650 in the initial couple of hours. However, the intraday dip witnessed buying interest as the broader markets continued its momentum intact. Nifty gave a breakout above this hurdle in the later part and ended well above 19700 level.

Nifty Today:

The markets continued the momentum and rallied higher to surpass the important hurdle of 19650. The BankNifty too gave a breakout from its consolidation phase, indicating a resumption of the broader uptrend. As mentioned in our earlier articles, the positive crossover in the momentum readings confirmed a change in trend from corrective to up and the index has now surpassed the important hurdles as well. If we look at the sectoral indices, the banking index has given a breakout from its consolidation phase while the IT index too has given breakout at the start of the week. Other sectors are also doing well and thus, the trend remains positive. The Midcap and the Small cap index has entered the overbought zone, however, it is often seen that when the trend is strongly bullish, the momentum continues in the overbought zone as well. Now, since the large caps have recently corrected and midcap/small caps have not, there might be more buying interest in the large cap stocks which will support the benchmark index as well. As far as levels are concerned, the immediate support base has shifted higher from 19300 to 19500 now. On the higher side, the index might post new record highs soon led by the index heavyweights.

Nifty surpass important hurdles, momentum in banking index turns positive    

 Hence, we continue with our optimistic approach and advise traders to continue to trade with a positive bias.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: