Nifty Outlook for 17 August 2023

Amidst negative cues from the global markets over the mid-week holiday, Nifty started trading on Wednesday with a gap down opening. However, post that we did not see any follow up selling and infact the index recovered gradually and ended the day marginally positive above 19450 mark.

Nifty Today:

Our markets have seen a lot of negative news flows off late where the global markets have corrected, INR has depreciated and has surpassed 83 mark and also FIIs have sold equities in the cash segment and formed short positions in the indices futures segment. However, Nifty has corrected from its recent swing high of 19990 and now it seems to be forming some support in the 19300-19250 range. In this range, the 40 DEMA coincides with the 23.6 percent retracement support of last four months upmove and hence, it remains a crucial support. On Wednesday, although the markets opened negative, put writers were quite active in Nifty as initially 19300 put option witnessed open interest addition and then later during the day build up was seen in 19400 put option. Thus, much of the negativity seems to be factored in and the Nifty has now been trading in a broad range of 19250-19650. There could be some time-wise correction or consolidation within this range before we see a breakout and the next directional move. 

 Nifty forms a support base at 19300-19250 range

Since the overall market breadth remains positive, traders should look for stock specific trading opportunities. A break below 19250 would extend this correction towards 19000-18800 and if the data turns positive and Nifty surpasses the hurdle of 19650, then it would lead to a resumption of the broader uptrend.

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

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