Nifty Outlook for 24 August 2023

Nifty retraced marginally lower in the first hour post opening on Wednesday, but the banking stocks witnessed a positive momentum and this led to a pullback move for the rest of the day. Nifty ended the day around 19450 with marginal gains, while the banking index outperformed and ended the day with gains of over a percent.

Nifty Today:

Nifty has been consolidating in a range since last few days and the index has formed a support base in 19300-19250 range. In Wednesday’s session, the call writers in both Nifty and the Bank Nifty were seen unwinding their positions and significant build up was seen in put options which is a positive sign. Also, the broader markets have been positive since last few days and the midcap index has been clocking new highs. While the Bank Nifty index has shown signs of outperformance and buying interest was seen in many of the banking stocks on Wednesday, Nifty too has ended the day around a crucial level. A falling trendline resistance drawn through this recent corrective phase is around 19470 and Nifty is on the verge of breakout above this trendline. A breakout could then lead to a positive move in the short term where next resistance would then be around 19650.

Short covering lifts banking stocks higher, Nifty too on verge of breakout

On the flipside, 19380-19300 will now be the immediate support zone for the Nifty. Traders are advised to trade with a positive bias and look for buying opportunities on intraday declines.

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

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