Nifty Outlook for 13 July 2023

Nifty continued to consolidate in a range and witnessed some cool-off again from 19500-19530 range. The index has been resisting around this level since last few sessions while the Bank Nifty index has seen some pullback move. The Nifty index ended the tad below 19400 while the Bank Nifty has approached its 20 DEMA support again.

Nifty Today:

The indices have been going through some consolidation since last few sessions which seems to be time-wise correction within an uptrend. The index has traded within the range of 19300-19530 and a breakout beyond this range would then lead to a directional move. Although the Banking index has seen some pullback move, some or other sector or index heavyweight has kept the index intact above its support. Hence, trader should look to trade with a positive bias as the broader trend remains intact. Above 19530, the Nifty index could continue its uptrend and rally towards 19700 while if it breaks 19300, then a pullback move towards 19100 could be seen. The Bank Nifty index has ended around its 20 DEMA support at 44500. Post the merger of HDFC and HDFC Bank, the bank could command the momentum in the banking index due to its high weightage.

      Nifty consolidating in 19300-19530 range, breakout to lead directional move

The Nifty Midcap index is trading in overbought zone but there are no signs of reversal yet. In a strong uptrend, the momentum usually continues overbought zone and hence, one should look for stock specific buying opportunities in the midcap space. The IT heavyweights too have been in a consolidation phase since few months, the near term momentum would much depend on the results that companies would declare. 

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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