Nifty Outlook for 3 May 2023

Post an extended weekend, Nifty started trading on a positive note above 18100 mark, however the index consolidated within a range throughout the day and ended around 18150 with gains of about half a percent.  

Nifty Today:

Nifty consolidated within a range in Tuesday’ session, but the broader markets continued to witness buying interest and thus the Midcap and the SmallCap index showed outperformance. Now, the overall trend continues to be up but the momentum readings on the hourly chart for Nifty have reached its overbought zone. Many times, the indices continue to rally in the overbought zone as well when the trend is strong, but such setups do not provide a favorable risk reward ratio. Hence, we advise readers to avoid aggressive longs here and rather wait for a corrective dip and enter on declines near support. As far as levels are concerned, the immediate supports for Nifty are placed around 18030 and 17930 while resistance is seen around 18260. 

Midcaps witnessing buying interest; outperforms benchmark
    

The stock specific activity continues to be robust and hence, one can focus on stock specific opportunities for now.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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