Nifty Outlook - 6 Jan 2023

Listen icon

The weekly expiry day started marginally positive but post initial 15 minutes of consolidation, the index corrected sharply and traded with a negative bias for most part of the day. It sneaked below 17900 at a point but recovered some of the losses in the last hour and ended the day tad below 18000 with a loss of over a quarter of a percent.

Nifty Today:

 

After failing to cross above the 20 DEMA, the indices have corrected in last couple of sessions and it breached the 18000 mark. The correction has been mainly due to FII selling as their ‘Long Short Ratio’ has declined from 57 percent at the start of January series to around 36 percent. They also have sold equities in the cash segment and a combination of FIIs selling in the cash segment along with short formations in index futures has generally been negative for the markets. However, if we look from a technical perspective, Nifty is trading around a rising trendline support and after the recent corrective phase in last one month, the momentum readings on the lower time frame charts have entered the oversold zone. Hence, it does not look to be an appropriate zone to form shorts and infact, one can take some contra trade and look for buying opportunities. The swing low of 17770 would be seen as important support and only if we break that support, then we would see the momentum accelerating on the downside. Hence, till this support is intact one can look for buying opportunities in intraday declines. 

 

Nifty approaches important support zone post recent correction

 

Market Outlook 6th Jan 2023

 

The Bank Nifty index which had outperformed in last few months witnessed a sharp correction in intraday today. We may see some stock specific moves from stocks within this sector in the near term while some of the other sectors may take the leadership in the short term. Traders are advised to look for stock specific buying opportunities in stocks which have shown relative strength in the last one week.

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17880

42220

Support 2

17770

41850

Resistance 1

18110

43060

Resistance 2

18230

43520

 

How do you rate this article?

Characters remaining (1500)

Disclaimer: Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

FREE Trading & Demat Account
Resend OTP
Resend OTP
''
''
Please Enter OTP
By proceeding, you agree T&C*
Mobile No. belongs to

Market Outlook Related Articles

Market Outlook for 24 May 2024

by Ruchit Jain 24th May 2024

Market Outlook for 23 May 2024

by Ruchit Jain 23rd May 2024

Market Outlook for 22 May 2024

by Ruchit Jain 22nd May 2024

Want to Use 5paisa
Trading App?