Nifty Outlook for 11 July 2023

Nifty started the week marginally positive around 19400 levels, but it traded within a narrow range throughout the day. The rally in the index heavyweight Reliance Ind kept the Nifty in green and it ended around 19350 with marginal gains.

Nifty Today:

It was day of consolidation as far as index move was concerned. The key indices consolidated within a narrow range while some profit booking was seen in the broader market due to which the breadth was marginally in favor of the declines. Post the recent run up, the momentum readings had reached the overbought zone which has started to cool-off. Generally when the momentum readings are overbought, we either see a time-wise correction or a price wise correction to cool-off the overbought set ups. Till the important supports in Nifty are intact, we believe the index would just see some consolidation and then resume the uptrend as the trend remains strong. Hence, we do not expect much downside in the Nifty while stocks specific correction could be there. The immediate support for watch out in Nifty is around 19300 followed by 19200-19100 range. Traders are advised to continue to trade with a ‘Buy on dip’ strategy and use any declines as buying opportunities. On the higher side, immediate resistance is seen around 19500 where open interest position build up is seen.

                                                                Consolidation in indices, heavyweight RIL provides support

For intraday and swing traders, focusing on stock specific trading opportunities will be a better strategy while positions traders are advised look for buying opportunities in stock specific corrective moves.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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