Nifty Outlook for 23 May 2023

Post last week’s correction, Nifty started this week on a positive note and traded with a positive bias throughout the day. The index ended the day above 18300 led by support from the IT stocks. Amongst the sectoral indices, Nifty IT index rallied about two and half percent while the Bank Nifty index consolidated within a narrow range.

Nifty Today:

During last week, Nifty witnessed a corrective phase from 18450 to 18060 and it took support around its 20 DEMA. In this correction, we did not see any fresh short formations and the market is again witnessing a positive momentum from this support zone. Thus the technical structure looks positive and it seems that the index could resume the uptrend after taking support around 20 DEMA. Market participants are concerned about the depreciating INR, but technically it is still trading within a range and a breakout above 83 will be a cause of worry then. So one should keep a close watch on the INR movement as well. The RSI oscillator on the lower time frame chart on Nifty is in ‘Buy Mode’ while if we look at the options data, 18200 put option have seen the highest OI build up in this series while highest open interest amongst call options is at 18500 strike. 

                                                                 IT sector takes the lead to lift the benchmark higher

Traders are advised to trade with a positive bias till the supports are intact and look for stock specific buying opportunities from the sectors which are outperforming.

Nifty, Bank Nifty Levels and FINNIFTY Levels: