Nifty Outlook for 14 July 2023

Nifty started the weekly expiry day on a positive note and surpassed the recent swing high of 19500. The momentum picked us as the index rallied above 19550, but it was short lived as we witnessed sell-off in the later part of the day and Nifty ended just above 19400.

Nifty Today:

The morning session on the weekly expiry day was full of hopes as the index surpassed the 19500 mark and it seemed that it resumed the momentum as support was seen from the heavyweights of the IT sector. However, when everything looks hunky dory, markets often tend to surprise the participants and the index breached the morning lows in the later part of the day. Such a move is usually termed as a ‘false breakout’ as absence of follow up buying leads to stuck positions of traders who went long on intraday breakout. Hence, this indicates that the index continues to be in a time-wise corrective phase and thus the follow up move will be important to see as we proceed towards the end of the week. For Nifty, 19300 continues to be an important support and if the same is breached, then we would expect some price wise correction towards 19150. On the flipside, 19500-19570 would be seen as the immediate resistance range which needs to be broken out for a resumption of the upmove. Traders are advised to take a stock specific approach at the moment and lighten up trading longs if the Nifty breaks 19300 support.

      Nifty registers new high, but witnessed some profit booking from highs

The Bank Nifty index is trading around its 20 DEMA support which is placed around 44500 which will be important to watch. The RSI oscillator on the daily chart is already in sell mode and hence, one should keenly watch if the index reverses from this support or not. The momentum readings on Nifty Midcap index too are in the overbought zone, thus we could see some pullback move in the midcap stocks in the near term.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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