Nifty Outlook for 25 May 2023

Our markets started the day on a negative note in Wednesday’s session and witnessed a pullback move from the lows. However, the index again corrected in the later part of the day and ended around the opening levels below 18300 with a loss of about one-third of a percent.

Nifty Today:

Since last few days, Nifty has been consolidating in a range and has taken support above the 20 DEMA support. This seems to a time wise corrective phase as the momentum readings were in overbought zone. In derivatives segment, we have not yet seen any short formations during correction which is a good sign. The ‘20 DEMA’ support for Nifty is now placed around 18150 which will be seen as immediate support. On the higher side, 18400-18450 range continues to be the resistance zone. In options segment, call writing is seen at 18400 strike while 18200 put option has decent open interest outstanding. Looking at the data, it seems that the consolidation could continue on the expiry day as well and either built up of fresh positions in the new F&O series or a breakout beyond the recent trading range will lead to the next directional move. Traders are advised to trade with a stock specific approach and trade with a ‘Buy on dip’ approach in the index.

                                                                 Market consolidates in a range, 18400-18450 key hurdle

The intraday supports for the coming session are placed around 18190 and 18100 while resistances are seen around 18310 and 18360.

Nifty, Bank Nifty Levels and FINNIFTY Levels: