Nifty Outlook for 26 Apr 2023

The indices traded in a narrow range in Tuesday’s session but the broader markets kept the momentum intact. Amidst stock specific movement, Nifty ended the day around 17770 with marginal gains while the Bank Nifty index ended on a flat note.

Nifty Today:

Nifty moved higher gradually and tested 17800 mark during the day. The indices did not see any significant move in Tuesday’s session but the stock specific moves were positive as the cash segment stocks witnessed outperformance. The derivatives data continues to be positive as the FIIs have added some long positions too post the recent short covering. Their ‘Long Short Ratio’ has improved to around 44 percent now. The immediate support for Nifty is placed in the range of 17720-17680 while the Bank Nifty support is placed around 17350. On the hourly chart, the Bank Nifty is showing some divergence as a new high in price is not confirmed by a new high in the RSI oscillator.

Index consolidates amidst buying momentum in midcap stocks

Such divergences can lead to some correction or a consolidation and hence, once should keep a close watch on this development. Although, the positional structure remains positive and hence one can keep a ‘Buy on dip’ approach.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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