Nifty Outlook 18 Jan 2023

Nifty started the day on a positive note and traded within a range for most part of the day. However, buying interest was seen in last couple of hours as certain heavyweights witnessed buying interest and thus Nifty rallied to end the day above 18050 with gains of almost a percent.

Nifty Today:

Our market has been consolidating within a range since last few weeks, but finally it seems that the index is geared for the next directional move. The stock specific momentum has started picking up as we are just a couple of weeks away from the Budget session. Nifty has ended the day around its ’20-day EMA’ which has acted as a hurdle and has not been surpassed since mid-December. If we see a follow up move in the coming session in Nifty, then it would be seen as a breakout from a consolidation which could lead to a trended upmove in the near term. In case of such breakout, the possible levels to expect in the near term would be around 18142/18200/18330. The RSI oscillator has given a positive crossover which is a positive sign. Now recently, the only factor restricting our markets has been the selling by the FII’s as they have been sellers in the cash segment as have formed short positions in the index futures segment too. It would be important to see if they cover their short positions going ahead as much of other global data is positive.

Nifty rallies to end near important zone

The immediate support for Nifty are placed around 17920 and 17850, while 17750 continues to remain a sacrosanct support.

Nifty & Bank Nifty Levels: