Nifty Outlook 13 Jan 2023

Nifty started the weekly expiry day marginally positive but it corrected during the day and traded with a negative bias. The index tested the December swing low support and formed a low of 17760, but recovered some of the losses from the support and ended above 17850 with a minor loss.

Nifty Today:

Nifty traded within a range on the expiry day which was much expected given that the option writers had positioned themselves with significant addition in both calls and puts. On the short term charts, the index is now trading at a crucial support zone and 17750-17800 is the sacrosanct support for the short term. If this support remains intact, then Nifty will try to form a base and look for cues from the global markets. But if the Nifty breaks this support then that will lead to another leg of the corrective phase. The recent consolidation phase has been in the range of 17750-18150 and a breakout beyond this will lead to the next directional move. The US Dollar index has corrected recently and INR too is showing strength against the Dollar which is a positive factor. Market will look for reaction from the global markets to the US CPI numbers and if the global markets continue their positivity, then our markets too could be poised for a short term uptrend from this support.

Market participants looking for global cues for a directional move

Thus, traders are advised to look for cues from the global markets and trade in the direction of the breakout from the above mentioned range.

Nifty & Bank Nifty Levels: