Nifty Outlook for 19 May 2023

On the day of weekly expiry, the benchmark index witnessed volatile move. After the positive opening on D-street, the nifty50 index wiped out all the early gains and dragged lower for the day, settling at 18129.95 levels with a 51 point loss. While Banknifty managed to close in the green with a 53.60 gain, at 43752.30.

Nifty Today:

On the option front, the highest OI is at 18300 followed by 18400 on the call side, while on the put side, the highest OI build up is at 18100 strike price followed by 18000, which indicates the overall market range for the coming days. The advance & decline ratio stood at 47% at the closing, while BAJFINANCE, BHARTIARTL, KOTAKBANK were the top gainers and DIVISLAB, ADANIPORTS, ITC were the prime laggards for the day. The volatility index INDIAVIX also tested the support around 11.10 and settled at 12.83.

Overall, the nifty index has been falling down consecutively for the last three days after the long up-move. On the daily timeframe, the index has formed Bearish Engulfing on Monday sessions, which indicates bearish momentum for the near term. Moreover, on the hourly chart, the nifty index has slipped below 100-SMA, which also suggests further bearishness. Momentum indicators RSI & MACD witnessed negative crossover that pointed-out a correction in the index.  

The U.S. dollar index held near a seven-week high on Thursday on the hope of a hawkish monetary policy stance and optimism about debt ceiling negotiations.

                                                                 Nifty traded lower consecutively third day in a row

Hence, traders are advised to trade cautiously until nifty again sustains above 18300 levels. On the downside, immediate support is at the 18000 mark. If the index breaks that support, more dips can be seen by the 17800/17700 mark.    

Nifty, Bank Nifty Levels and FINNIFTY Levels: