Nifty Outlook for 21 July 2023

Nifty witnessed a minor dip in the initial hour post opening on the weekly expiry day, but it recovered gradually and as it surpassed the level of 19850, the momentum accelerated and we were just short of achieving the 20000 milestone at the end. The Bank Nifty saw a good upmove led by the heavyweights and it surpassed the level of 46000 for the first time ever.

Nifty Today:

It was absolutely no stopping for our markets as the momentum continued in the indices and we almost tested the historical mark of 20000. The banking stocks led the momentum while some relative underperformance was seen in the midcap stocks. The index is quite close to the target of 20150 which we have been mentioning about since some time as it is the retracement level of the previous correction. And the RSI readings on the daily chart are approaching the overbought zone. Hence, it would be crucial to see if we see some correction from this level to cool-off the overbought set ups. However, we do not advise to take contra trades to the trend, but rather one look for some profit booking on trading long positions here. The overall trend remains up and hence, we would continue with the buy of dip approach in case of any correction going ahead. The overall data still remains positive as the FIIs have been buying in the cash segment and have long positions in the index futures segment as well.

      Nifty approaches milestone of 20000, Bank Nifty crosses 46000 mark

The immediate support zone for the Nifty is placed in the range of 19800-19700 while resistance is seen around 20150.

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

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