Nifty Outlook 17 Jan 2023

Nifty started the week on a positive note above 18000, but it did not witness any buying interest and witnessed selling pressure during the day. The index ended the day below 17900 with a loss of one-third of a percent.

Nifty Today:

Our markets have been going through a consolidation phase since last few weeks and there’s no sign of a directional breakout yet. In this consolidation. 17750-17800 has acted as a support range while the ‘20 DEMA’ has been a resistance. The moving average is now around 18060 which coincides with Monday’s high. Until we see a breakout beyond this range of 18050-17750, the consolidation phase will continue. Traders are advised to trade with a stock specific approach for now and trade in the direction of the breakout once the index moves beyond the range. The FII’s have been on the selling side recently which has been the main reason for the limited upmove. Also, if we look at the options segment, the option writers added positions in 18000-18100 call options and thus the derivatives data too hints at resistance in this range.

Nifty continues to consolidate in a range, breakout will lead to clear direction

The IT space witnessed some positive momentum as the index surpassed its hurdle of 29000. Some stock specific outperformance could continue from this sector in the near term.

Nifty & Bank Nifty Levels: