Nifty Outlook 3 Feb 2023

It was a quiet day for our markets compared to the Budget session. Inspite of continuation of the sharp correction in the Adani group stocks, Nifty traded within a range post the first hour hiccup. The index recovered in the last hour of trade and erased the intraday losses to end tad above 17610, near to previous day’s close.

Nifty Today:

The big events such as Budget and FOMC policy outcome have passed and the market thus finally seems to be settling down post the recent high volatility. Nifty traded within a range on the weekly expiry day and recovered from the intraday lows towards the end. Nifty is trading in a falling channel and prices are near to the lower end of the channel. The momentum readings on the daily chart too are in oversold zone hinting at possibility of a near term pullback if the supports remain intact. The support for Nifty is placed in the range of 17400-17350 which remains an important support. The IT and the FMCG space provided support to the market as the volatility in certain segments continued amidst sharp correction in the Adani group stocks. However, the banking index too recovered from the lows in the later part of the day and the Bank Nifty index ended on a positive note. For the coming session, 17700-17750 will be the important level to watch on the higher side, which if surpassed then it could lead to a positive momentum. 

Market witnessed intense volatility on Budget day    

The Nifty Midcap100 index is trading at important support as the Budget day low around 26900 coincides with the previous two lows registered in September 2022 and December 2022. Traders are advised to keep a close watch on this level for the broader market momentum and one should be very stock specific from a short term trading perspective.

Nifty & Bank Nifty Levels: