Nifty Outlook - 9 Dec-2022

Nifty traded in a narrow range on the weekly expiry day, but the banking index outperformed and rallied higher to mark a new record high. Nifty ended the day marginally above 18600 while Bank Nifty posted gains of over a percent and ended around 43600.

Nifty Today:

Traders were eyeing the Gujarat elections outcome and since the outcome was much on expected lines (with polls), the index did not react much to the results. However, the broader markets witnessed good momentum and stocks from the banking space (especially PSU Banks) witnessed good buying interest. In last few trading sessions, the indices have seen some time-wise correction (consolidation) and the banking index seems to have resumed its uptrend. Nifty too is trading above its ’20 DEMA’ support which is now placed around 18450. Thus, 18500-18450 is a crucial support range for the index and till the index manages to sustain above the same, it could again witness an up move in the short term. The Banking index has already shown a positive sign and the IT index and the heavyweight RIL too are trading around their support, thus it needs to be seen which pockets take the lead from current level to support the index. 

Bank Nifty resumes its positive momentum and clocks new record

Traders are advised to look for buying opportunities and trade with a positive bias, however, one should keep stop losses on long positions below 18450 as a close below this could then result in price-wise corrective phase. On the flipside, 18730 and 18800 would be the near term resistances to watch out for.

Nifty & Bank Nifty Levels: