Nifty Outlook for 11 May 2023

Nifty corrected in the first hour of the trade on Wednesday and made a low above 18200. The index witnessed gradual recovery from the lows and it ended the day above 18300 with marginal gains.

Nifty Today:

Nifty continued to witness buying interest in intraday decline which indicates a continuation of the positive trend. The daily momentum readings continue to be positive while the hourly chart indicates some divergences along with probable formation of a ‘Rising Wedge’ pattern. Now this divergence is an early sign of a possible corrective phase going ahead, but looking at the momentum it is better not to preempt any reversal until the immediate supports are broken. The immediate support is placed around 18200-18170 and thus, intraday/swing traders can use this as a reference level for stop losses on long positions. On the higher side, 18400-18500 is the resistance range and one should look to lighten up some longs in this range and then watch out for more cues. The F&O data is neutral for now as we have not seen aggressive new directional positions in the index futures segment. The ‘Long Short Ratio’ for FIIs and Clients segment is around 48 percent for both. The US CPI data will be an important event tonight which could have some impact at opening on the weekly expiry day.

                                        Gradual recovery from lows led Nifty closing above 18300

 Until the index breaks the above mentioned support, it is better to trade with the trend and book profits in the mentioned resistance range.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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