Nifty Outlook 11 Jan 2023

Post the upmove in Monday’s session, our markets witnessed selling pressure on Tuesday throughout the day and ended below previous day’s low around 17900, with a loss of over a percent.

Nifty Today:

Our market has been oscillating within a broad range since last few days with alternate bouts of buying and selling. On pullback moves, Nifty is witnessing selling pressure around its ’20 DEMA’ while corrections towards 17900-17800 have seen buying interest. The immediate support for Nifty is placed around previous months low at 17770 which is also the 50 percent retracement level of the previous upmove. On the flipside, the 20-day EMA which was breached during mid-December has not been surpassed yet which remains a hurdle around 18150. The FII’s data have turned neutral as they have covered some of their short positions as well. Hence, the next directional move for Nifty will be seen only on a breakout beyond the above mentioned range and till then consolidation could continue. Traders are advised to trade with a stock specific approach for now and look to take positional bets only post a breakout on either side. 

Nifty consolidating within a broad range; breakout to lead directional move

Similar to Nifty, the banking index too has been consolidating within a broad range with immediate support placed at 41800. Below this, the next support range for the index will be seen in the range of 41600-41400.  

Nifty & Bank Nifty Levels: