Nifty Outlook 1 Feb 2023

Nifty witnessed some selling pressure at the start of the day on Tuesday, but it recovered gradually post the initial hiccup and ended the day marginally positive above 17650.

Nifty Today:

 Ahead of the Union Budget, the Nifty did not see any significant move as the IT space witnessed correction following the sell-off seen in the Nasdaq index. However, apart from IT, other sectors managed to recover smartly and some of the beaten down counters witnessed buying interest as the fear on the Adani group stocks subsided. The banking stocks too witnessed a pullback move leading to outperformance in the Banknifty index. Now, the entire focus would be on the Union Budget announcements as participants would hope for scores of positive announcements. Technically, the Nifty index is trading in a channel with lower end placed in 17400-17350 range. On the flipside, 17750-17800 would be seen as immediate resistance which was the recent support broken. Above this, 17930-18000 would be the next resistance to watch out for. FII’s have been on the bearish side since last few days as they have been selling in the cash segment and in the index futures segment too.

Adani group fear subsides, focus now on Union Budget    

They have just about 18 percent of the positions on the long side in the index futures segment, and it needs to be seen if any positive trigger leads to short covering by them. The volatility could remain high and hence traders should trade with proper risk management.

Nifty & Bank Nifty Levels: