Nifty Outlook for 27 June 2023

The indices traded in a narrow range in Monday’s session, but the broader market momentum was positive as stock specific buying interest was seen. Nifty ended the day around 18700 with marginal gains.

Nifty Today:

Nifty traded around its 20 DEMA support for the entire day and managed to hold above the support level. However, the momentum was missing in the indices but the midcaps witnessed decent outperformance due to which the overall market breadth was healthy. The Nifty index is trading around its crucial support for 18650 and it needs to be seen if it manages to resume the uptrend from this support. The momentum readings which were in the overbought zone during last week have cooled-off in last couple of sessions and since the buying interest still continues, we could see a resumption of the upmove in the near term. Hence, traders are advised to trade with the trend and keep a tab on the support of 18650. A close below this support would then lead to some price wise correction while if this support remains intact, then a pullback again towards 18670-18730 could be seen. The Bank Nifty index has consolidated within a range this entire month which seems to be a time-wise corrective phase. The immediate resistance for the banking index is seen around 43900-44000 and a breakout above the same will lead to a resumption of the uptrend.

                                                                   Benchmark index consolidating in a range; broader markets resume momentum   

The Midcap stocks seem to be gaining back momentum as the RSI oscillator has cooled-off from the highs. The 20 DEMA around 34500 is intact in the Nifty Midcap 100 index and till the support holds, one should look to trade in the direction of the trend.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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