Nifty Outlook for 4 July 2023

Our markets continued with the recent momentum at the start of the week and opened on a positive note. Nifty continued to mark new record highs led by heavyweights and ended the day above 19300 with gains of seven-tenths of a percent.

Nifty Today:

It’s been a merry run for the bulls as there seems to be no hurdle to the ongoing momentum. The momentum readings have reached the overbought zone but quite often we see that when the trend is strong, the market continues to rally even in the overbought zone. Hence, traders should avoid taking any contra bets and continue to look for buying opportunities. The large cap stocks are witnessing good price volume action which is providing leadership to support the index. Since Nifty is trading at an all-time high, reciprocal retracements give us some fair idea about the resistance ahead. With such calculation, the immediate resistance for Nifty is seen around 19440 as it is the 127 percent retracement of the previous corrective phase. Traders are advised to watch out how the index reacts around this hurdle and take decisions on trading positions accordingly. On the flipside, the 20 DEMA which has been the sacrosanct support in this rally is now around 18800.

                                                                Merry-run continues for the indices, Nifty surpasses 19300

While the lower time frame charts indicates immediate supports around 19150 and 19025.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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