Nifty Outlook 9 Feb 2023

Nifty started the day marginally positive but it witnessed buying interest right from the opening ticks led by the heavyweights from the IT space. The index traded with a positive bias throughout the day and ended above 17850 with gains of almost a percent.

Nifty Today:

Nifty traded with a positive bias in Tuesday’s session but the Bank Nifty index consolidated in a narrow range post the announcement of the RBI policy outcome. The support for the market was majorly seen from the IT stocks and heavyweights such as Reliance Industries. The India VIX has cooled off to below 14 now indicating that the market has discounted all the recent news flows. Nifty has been trading in a channel and it has recovered from the lower end of the channel since the Budget day, and is now moving towards the higher end around 17950-18000. The market breadth has been positive indicating a buying interest in the broader markets. The only worry factor has been the selling by FIIs as they had only about 15 percent of their positions on the long side and 85% on the short side. But, these positions too seem to be short heavy and if they start covering their short positions then that could lead to a good upmove in the indices in near term. However, when will they trim their positions, needs to be seen. Traders are advised to continue to trade with a positive bias and look for buying opportunities on intraday declines. The support for Nifty is placed in the range of 17800-17770 for the expiry day and one can look to buy on any declines towards this range.

Nifty witnessed positive momentum amidst buying interest in broader markets      

On the flipside, 17950-18000 is seen as the immediate hurdle, above which the index could see a continuation of movement towards 18200.

Nifty & Bank Nifty Levels:

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