Nifty Outlook - 23 Dec-2022

The U.S. markets traded with a positive bias on Wednesday evening which led to a positive opening for our markets too. However, the impact was for a limited time as the market witnessed selling pressure again and corrected further to sneak below 18100 mark. Nifty continued to witness selling pressure in intraday pullbacks and ended the day above 18100 with a loss of four-tenths of a percent.

Nifty Today:

Inspite of the global markets rally, our markets shrugged off the cues and corrected continued the previous day’s negative momentum. Although the damage in the index was not too large, the broader markets witnessed a sell-off and the midcap and small cap space witnessed underperformance. Now the index has corrected from the swing high of 18888 and has completed 38.2 percent retracement of the recent upmove from 16750 to 18888. Today’s low coincides with this retracement support which is placed around 18070 and will be the important level to watch in the coming session. Below this support, the rising trendline and swing low support coincides around 17970 and hence, this 100 point range of 18070-17970 is the important support range. FII;s have recently unwound long positions and have net short positions which has led to this recent correction. The momentum readings on the lower time frame charts have entered the oversold zone and hence a pullback move could be seen in the near term.

Market shrugs off positive global cues and corrects further

However, looking at the overall structure the upside could be limited and it could just be a retracement of the recent corrective phase. Hence, traders should be very specific in picking stocks for trading and rather avoid aggressive bets. The immediate resistances on pullback moves will be seen around 18300 and 18400.

Nifty & Bank Nifty Levels: