Nifty Outlook for 1 August 23

Nifty traded within a narrow range of less than 100 points throughout the day, and it ended the day with a marginal loss. Most of the other indices also consolidated in a range on Tuesday, while the IT space witnessed some recovery and outperformed other sectoral indices.

Nifty Today:

It was a day of consolidation for the markets as Nifty traded within a narrow range. If we look at the lower time frame (hourly chart), then it is seen that the index is trading in a channel and is resisting around the higher end of the channel which is placed around 17800. Thus, this remains a crucial resistance for the short term which needs to be surpassed to regain strength. On the other hand, 19600 is the immediate support from where the index has witnessed pullback in last few sessions. The momentum readings in the Midcap and the Smallcap indices are in highly overbought zone and hence, the risk reward is not favorable for fresh longs at current levels. The derivatives data too are neutral as of now as FII’s have trimmed some of their long positions in the index futures.  

      Nifty consolidated in a range; recovery seen in IT stocks

Hence, we advise traders to be very stock specific and look trade with a ‘Buy on dip’ approach rather than chasing stocks at higher levels.

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

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