Nifty Outlook for 20 July 2023

Our markets witnessed some volatility in a range ahead of the weekly expiry, but the intraday dip post opening witnessed buying interest and Nifty rallied higher to end the day well above 19800 with gains of almost half a percent.

Nifty Today:

It has been a one-way move for the Nifty as the index has been witnessing buying interest in intraday declines. The broader market too is displaying immense strength and hence, the declines in the index are very small. In Wednesday’s session, we saw some call writing in 19800 strike in the morning and hence, we saw a decline from the morning highs. But as the trend is strong enough, some or other heavyweight along with broader markets keeps supporting the market and hence, the Nifty surpassed 19800 level which forced the option writers to cover the positions. FII’s have been buying continuously in the cash segment as they have bought equities worth over 15000 crores so far in this month. They also have long positions in the index futures segment with 70 percent positions bullish. Such a combination of buying in the cash segment and longs in index futures usually leads to a trended phase and we have been going through one such phase currently. Now the immediate support for the index has shifted to 19700-19600 range, while the index is eyeing to mark a history of rallying towards 20000 mark for the first time ever. Infact, we have been mentioning about the retracement level of 20150 on the Nifty index since some time and the Nifty seems to be heading towards the same sooner.

      Nifty approaching new milestone of 20000

Hence, traders are advised to continue to trade with the trend and use intraday dips as buying opportunities.

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

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