Nifty Outlook 16 Feb 2023

Nifty witnessed buying interest in the initial dip at open on Wednesday and the index traded with a positive bias throughout the day. With the support of IT sector and heavyweight such as Reliance, Nifty ended the day above 18000 with gains of about half a percent.

Nifty Today:

Nifty finally reclaimed the 18000 mark at close ahead of the weekly expiry day as the index heavyweights continued to pull the index higher. The IT sector continued its momentum and the banking index although had a lackluster trade, it too recovered from the lows during the end. Now, technically the index has given a breakout from a falling trendline resistance and this should now lead to a trended upmove in the near term. The global markets have being doing well off-late but we have underperformed due to various news flows and selling by the FII’s. But FII’s have started buying nthe cash segment since last three days and in index futures segment too, they have started covering their positions. The Client segment already has been trading with a positive bias and now short covering by these stronger hands could lead to further optimism. Hence, we continue with our advice to traders to trade with a positive bias and look for buying opportunities. The immediate support for Nifty is placed in the range of 18900-18850 while on the higher side, the index could attempt to test its previous swing high of 18200-18250. 

Nifty reclaims 18000 at close, FII’s run to cover shorts

The Bank Nifty index has been consolidating in a range since last few days. But certain heavyweights from the private sector are on the verge of a breakout which could lead the banking index higher too. Above 41800, the banking index too could witness a decent momentum on the positive side.      

Nifty & Bank Nifty Levels:

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