Nifty Outlook for 23 August 2023

In last couple of trading sessions, Nifty has seen a pullback move from the support of 19300 and it surpassed the 19400 mark today. However, we largely witnessed trading within a narrow range throughout the day, and the Nifty gave up the intraday gains towards the end to close on a flat note just below 19400.

Nifty Today:

Post the recent correction from 19990 to 19250, Nifty seems to have entered a consolidation phase as the index has been trading within a narrow range. Options writers have built up positions in 19300 put and 19400 call options for this weekly expiry which indicates that participants are anticipating a narrow range for the index. Also, in BankNifty options both at-the-money call and put of 44000 strike price have seen high open interest built-up. FIIs who have recently formed short positions in the index futures segment, have covered some of their shorts and not much activity is seen in last couple of sessions. Technically 19300-19250 is seen as a strong support as the 50 DEMA coincides with the retracement supports in this zone. Hence, the price wise correction seems to be done for now and the momentum would turn negative again only if we break 19250 support. However, the near term trend seems to have changed from down to sideways for now and a breakout above 19450-19500 resistance is important for a resumption of the uptrend. 

Nifty consolidates in a range while midcaps continue upmove

As the overall market breadth is positive, traders should focus on a stock specific approach at this moment. A breakout beyond 19250-19500 will then lead to a directional move in the direction of the breakout.

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

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