Nifty Outlook for 1 September 2023

Nifty started trading on a flat note on the last day of the August month, however, the index corrected gradually during the day and ended around 19250 with a loss of about half a percent.

Nifty Today:

Our markets witnessed a consolidation phase for most part of the August series as Nifty traded within a broad range. However, the broader markets kept traders on toes as the momentum continued in this space and the midcap index continued to clock new record highs. The midcap index is in the overbought zone, but there are no signs of reversal yet and it's often seen that in a strong trended phase, the upmove continues in the overbought zone as the demand outweighs supply in such phase. On the other hand, if we look at the benchmark indices, then it seems to be a corrective phase within a broader uptrend for the Nifty. Nifty is trading in a channel and the support is placed around 19200. Only if the index closes below this support, then we can expect further correction towards the 89 EMA which is placed around 19000 level. On the higher side, the lower top lower bottom on the lower time frame chart continues on Nifty and the RSI Smoothed oscillator is yet to give a positive crossover since last one month. The immediate resistance for Nifty is seen in the range of 19450-19500 and only a breakout beyond the same would confirm a resumption of the uptrend.

Nifty consolidates in August month, midcaps continue outperformance

The divergence continues in Nifty and the Midcap index wherein the former is in a corrective phase while the later has continued its uptrend. Until we see a reversal in the midcap index, it's better to ride the trend with a stock specific approach.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: