Nifty Outlook for 4 August 2023

Our markets continued with the previous day’s negativity and corrected throughout the day. Nifty tested the 19300 mark, but it recovered marginally towards the end and ended the day marginally below 19400 with a loss of three-fourth of a percent.

Nifty Today:

On the back of negativity seen in the global markets, Nifty has corrected from the recent swing high of 19990 to 19300 in a short period of time. The correction has been sharper in last couple of sessions owing to corrections in the global markets. FII’s who had rolled over lesser long positions in the index futures during the July series expiry week have trimmed their positions further and have ‘Long Short Ratio’ of less than 50 percent now. Also, they have been net sellers in the cash segment in last few sessions which has led to this correction in the market. Amongst other factors, INR has depreciated sharply in last few days and is hovering around 82.70. It has resisted around that 83 mark several times in the recent past and thus, this would be seen as a sacrosanct level for the currency. Technically, this downmove just seems to be a correction within an uptrend and the immediate support range for Nifty is at 19290-19220 where the 40 DEMA is placed and is also the 23.6 percent retracement of the entire upmove of last four months.

      Market continues its choppiness, approaches immediate support

Thus, traders should look to cover their short positions and look for buying opportunities in this range as at least a pullback move should be seen from here. On the higher side, 19500 followed by 19580 would be the immediate resistances to watch out for.

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

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