Nifty Outlook for 28 Apr 2023

Nifty continued its upmove on the F&O expiry day of the April series and rallied to end the day above 17900. The broader markets witnessed another day of positive action as the market breadth was robust, and the Bank Nifty index reclaimed the 43000 mark.  

Nifty Today:

The April series completely belonged to the bulls as this series started with rollover of short positions from the past series. However, as the index breached above its hurdle of 17200 at the start of this series, traders started covering their short positions. As the month progressed, the market showed strength as buying emerged in the broader markets. We witnessed short covering as well as fresh long build up which led to a sustained upmove and the index is just a kissing distance away now from reclaiming the 18000 mark. One can observe that the ’20 DEMA’ has acted as a good support throughout this month and the Nifty index has not breached that support. The RSI is also positive and has surpassed the 70 mark indicating rising momentum. Hence, until we see any signs of reversal, traders should continue to trade with a positive bias and stay with the trend. Now, the momentum readings on the hourly charts have reached the overbought zone, but the index many times continues to trend higher in the overbought zone when the trend is strong. Hence, one should not pre-empt any reversal here, but be watchful on the hourly setups for any divergence signs in the near term.

Nifty rallied in April series due to short covering and fresh longs 

The important supports for Nifty are now placed around 17815 and 17760 while initial resistance is seen around 17970, followed by the next hurdle in the 18060-18100 range.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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