Nifty Outlook for 13 Apr 2023

Nifty rallied higher for the eighth consecutive trading sessions and ended above the 17800 mark with gain of half a percent.  

Nifty Today:

Ever since the Nifty broke from the high of 17200 resistance, there has been no looking back so far and the index is not fast approaching to reclaim the 18000 level. The index has also given a break out from the falling trendline resistance and the RSI oscillator on the daily chart continues to hint at a positive momentum. Hence, the technical structure remains bullish on the daily chart, but the readings on the lower time frame (hourly) chart looks over bought. Hence, we could see some profit booking or a pullback move in the next few sessions to relieve the oversold set-ups. But traders trade with the trend and keep a ‘Buy on dip” approach on any declines. The supports have shifted higher now and the immediate supports are now placed around 17700 and 17600. On the higher side, 17950-18060 is the immediate resistance for the benchmark index. FII’s have covered some of their short positions in last few days but still their ‘Long Short Ratio’ is low around 28 percent due to lack of long additions.

Nifty rallies for eight consecutive sessions, ‘Buy on dip’ strategy advisable for trading 

As the ratio improves gradually, our market would get support from this data which would be a factor to keenly keep a watch on.

Nifty & Bank Nifty Levels:

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