Nifty Outlook for 16 August 2023

Our markets started trading for the week on a negative note as the INR depreciated and breached the important hurdle of 83 mark. However, post some volatility in the first hour of the trade, the Nifty recovered gradually led by some of the heavyweights and it wiped off all the intraday losses to end the day on a flat note.

Nifty Today:

The depreciation in the currency worried market participants and hence, we witnessed a sharp sell-off at the opening on Monday. However, as the day progressed, the index recovered gradually as buying interest in heavyweights such as Reliance and INFY lifted the benchmark from the intraday lows. Also, technically the index has a crucial support placed around 19240 as it is the 23.6 percent retracement levels of the recent upmove of last four months. For now, this range of 19300-19250 has been acting as a support and it remains a crucial support range for the near term. The lower top lop lower bottom structure on the shorter time frame charts is not negated yet and the FII’s too have not showed any signs of covering their shorts or buying in cash segment. Thus, the follow up buying is important with change in the data to conclude if the index has formed a new base in the above mentioned range. On pullback moves, 19650 remains a crucial hurdle which needs to be surpassed to negate the recent corrective structure. Along with the global market movement, traders should keep a close watch on INR as well as the currency movement usually has inverse correlation with the equities.  

 Equity market participants worried over depreciation in INR

A breakout above 19650 will then lead to a resumption of the uptrend while a breakdown below 19250 could then drag the markets further towards 19000 mark.

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

​