Nifty Outlook for 17 May 2023

Nifty started the day on a flat note, but it witnessed a gradual selling pressure throughout the day and ended the day below 18300 with a loss of over 100 points.

Nifty Today:

Nifty was trading around crucial level as it has retraced the previous correction by 78.6 percent and has resistance around this retracement level which is around 18450. The index was unable to surpass this hurdle and witnessed some sell-off in Tuesday’s session. The momentum readings on the hourly chart have given a negative crossover while it remains positive on the daily chart, indicating a corrective phase within an uptrend. For now, the Bank Nifty index too is trading around its previous high of December 2022 which was around 44150. On the hourly chart, the index is trading in a rising channel and has ended near the support end of the channel. Thus, the follow up move will be important as if the index continues with the downmove and breaks 18200, then the index could retrace the recent upmove in the near term. The immediate level to expect then will be initially around the ’20 DEMA’ support which is placed around 18070. On the higher side, 18400-18450 will be seen as the immediate hurdle. A move above 18450 will indicate a continuation of the uptrend.

                                                              Initial signs of profit booking in market, hurdle at 18450 

Our markets have seen a sharp run up in last one and a half month. The broad market rally indicates this rally as an uptrend but given that the momentum readings are overbought, a corrective phase within an uptrend should not be ruled out in the short term. The RSI Smoothed oscillator on the daily chart of Nifty, Bank Nifty and the Midcap index are in buy mode as of now. But one should keep a close tab on the same as the readings are overbought and any negative crossover will be.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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