Nifty Outlook for 31 August 2023

Following the positive global cues, Nifty started trading on a positive note on Wednesday and it traded around 19450 mark in the first hour. However, there was no follow up move and the banking stocks witnessed selling pressure in the later part of the day. Thus, the Nifty index too gave up all the intraday gains and ended the day below 19350 on a flat note. 

Nifty Today:

Nifty started the day on a positive note but the index was not able to capitalize on the opening strength. The falling trendline resistance of the recent corrective phase was around 19500 and it is important to surpass that hurdle for a resumption of the uptrend. However, the index witnessed selling pressure in the later part of the day (esp. the banking index) which indicates that the consolidation still continues. The immediate support for Nifty is placed in the range of 19300-19250. A break below the lower end of this support could result in a down move towards 19000-19100. On the flipside, 19450-19500 is the strong resistance zone for the index which needs to be surpassed for a resumption of the uptrend.

Market gives up opening gains, midcaps continue outperformance

The midcap space has been doing well and has outperformed the benchmark largely. With no signs of reversal yet, the momentum could continue in the near term and hence, focusing on stock specific strategies could be a better approach in such a sideways market.

Nifty, Bank Nifty Levels and  FINNIFTY Levels: