Nifty Outlook - 23 Nov-2022

The Nifty consolidated within a narrow range for most part of the day, but it showed some strength towards the end led by some of the heavyweights and it ended around 18250 with gains of about half a percent.

Nifty Today:

In last one week, the indices have consolidated within a narrow range, but Nifty is still comfortably trading above its crucial support range of 18100-18000. For most of the session on Tuesday, Nifty managed to trade above 18200 mark as the 18200 put options added some open interest indicating that market participants are expecting this level to hold on till expiry. Since Nifty is still trading above its 20 DEMA support, the recent consolidation should be seen as a time-wise correction within a short term uptrend and not a reversal of the trend. The broader markets have not been participating which is definitely a cause of worry. But until the index breaks its important supports, it's better not to preempt any reversal and continue to trade with the trend. The 20 DEMA has now shifted higher around 18090 which now would be seen as an important short term support.  

Lackluster movement in index continues as broader markets diverge

On the higher side, the open interest position indicates immediate resistance around 18300 and if the index manages to surpass above the same, then there could be some short covering which could lead to a positive momentum in next couple of sessions.

Nifty & Bank Nifty Levels: