Nifty Outlook 24 Feb 2023

Nifty continued its downmove at the start of the day and corrected up to 17450 in the initial hour of the trade. However, it recovered from the lows up to 17600 and then consolidated within the range of 17500 to 17600 throughout the day. It ended the expiry day tad above 17500 with a marginal loss.

Nifty Today:

In last few trading sessions, Nifty has corrected from the high of over 18100 to 17500 with no pullback moves in between. The BankNifty too has corrected sharply in last few days and hence, the momentum readings on the lower time frame charts have entered the oversold zone. It remains in ‘Sell Mode’ on the daily chart indicating the short term trend negative, but the oversold hourly set-ups indicate a possibility of a pullback move in the near term. Nifty formed a support in the range of 17400-17350 earlier which would be seen as the immediate support while the BankNifty index has formed a ‘Doji’ candlestick pattern around its Budget day low. A move above Thursday’s high could be a trigger for a pullback move in the coming sessions to relieve the oversold set ups on hourly chart. However, until the structure of the daily chart changes, such pullback moves are likely to face selling pressure at higher levels. Hence, traders are advised to trade one-step at a time and avoid aggressive trades till the trend changes again.One should also keep a close tab on the Nifty Midcap100 index which had taken support in 29850-30000 range thrice in the recent past. The index is back towards that support zone and if that level gets breached, then it would mean further pressure in the midcap stocks.

Nifty consolidates on the expiry day, hourly readings enter oversold zone

The important intraday supports for Nifty are placed around 17440 and 17360 whereas resistance will be seen in the range of 17650-17700.

Nifty & Bank Nifty Levels:

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