Nifty Outlook - 24 Nov-2022

It was another day of consolidation in the index where the Nifty traded in a narrow range post a positive opening and did not witness any directional move. The Bank Nifty relative outperformed but it too gave up some of the gains towards the end. Nifty ultimately ended this rangebound session above 18260 with marginal gains.

Nifty Today:

The global cues were positive at the start of the day and hence, our markets too started the day on an optimistic note. After some consolidation, the banking index took leadership and witnessed a positive momentum, but it gave up some of the gains towards the end as the broader market did not participate and Nifty too continued its lackluster movement. Since last few days, the market breadth has not been in support of the upmove in the index which is a sign of divergence. However, since the Nifty has not breached its important supports, this should be seen as a time-wise correction as of now. Hence, until the index resumes the upmove with support of broader market participation it is better to avoid aggressive trading and stay on the sideline for time being. The 20 DEMA for the Nifty is now placed around 18100 and hence, it would be an important support to watch for the short term.

Nifty consolidates in a range ahead of the expiry day

Although the Bank Nifty index has been outperforming, this index seems to be forming a ‘Rising Wedge' pattern on the daily chart. The immediate support for the same would be seen around 42200 and the trend remains positive till it is intact. Hence, 18000-18100 range in Nifty and 42200-42000 range in Bank Nifty are the key supports and traders should keep a close tab on the same.

Nifty & Bank Nifty Levels: