Nifty Outlook for 31 May 2023

Post a positive opening at the start of the week; the index witnessed some consolidation in a range in last couple of trading sessions. Nifty ended Tuesday’s session above 18600 with marginal gains.

Nifty Today:

Nifty has been trading in a rising channel and has been forming a ‘Higher Top Higher Bottom’ structure. Recently, the index witnessed some consolidation which was just a time-wise correction and the ’20 DEMA’ has acted as a support in corrective phases in last couple of months. Thus, the broader trend for the market remains positive and traders should continue to trade in the direction of the trend. The FII’s have been buying equities in the cash segment and have formed long positions in the index futures segment as well with ‘Long Short Ratio’ over 60 percent. On the lower time frame charts, the immediate supports for Nifty are placed around 18560 and 18480 while the positional support (20 DEMA) has now shifted higher to 18280. On the higher side, the immediate resistances are seen around 18700 followed by 18800.

                                                                Support base shifts higher; trend remains positive

The broader markets are continuing with the uptrend as the Nifty Midcap 100 index is trading at its all-time levels. Hence, traders are advised to trade with a positive bias and look for buying opportunities on any declines.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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