Nifty Outlook for 23 June 2023

Nifty almost tested the previous swing high seen in the month of December 2022, but it then witnessed some sell-off towards the end as some profit booking was seen in the broader markets. The index ended the day below 18800 with a loss of about half a percent.

Nifty Today:

The indices traded within a narrow range on the weekly expiry day, but profit booking was clearly seen in the broader markets as the midcap stocks which had run up sharply witnessed some correction. The momentum readings on the midcap index are highly overbought and needs to cool-off which can be seen either by some consolidation (time-wise correction) or some price-wise correction. Hence, traders need to be selective in stock picking and look for buying opportunities on declines when the overbought set ups cools-off. The important support for Nifty is placed around the 20 DEMA at 18640 and a break below the same could then lead to some corrective phase in the index. Till then, they uptrend still remains intact. On the higher side 18850-18900 is the immediate resistance range as the index is witnessing some hurdle around this previous high. A move above the same will result in a continuation of the uptrend. For much part of the session on the weekly expiry day, the Bank Nifty index witnessed some strength, however it resistance around 44000-44100 range which is a hurdle seen on the lower time frame charts. A breakout above 44100 could lead to the next leg of the upmove in the banking index post the recent consolidation.

                                                                      Profit booking seen in some mid-cap stocks   

But till it is trading below this hurdle, the trend remains sideways with immediate support around 43350.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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