Nifty Outlook for 4 May 2023

On the back of negative global cues, Nifty started the day on a negative note in Wednesday’s session and traded within a range throughout the day. Amidst stock specific momentum, Nifty ended the day tad below 18100 with a loss of about one-third of a percent.

Nifty Today:

Nifty corrected due to negative global cues, but the downside was limited as the stock specific action was positive due to buying seen in the midcap stocks. The momentum readings on the lower time frame chart were in the overbought zone, and hence a corrective move was much required. Now, the support for Nifty is placed around 18000-17970 and any decline towards this support zone could then witness buying interest. The FED meeting outcome will be important to watch out as how the global markets react to the same will have an impact on our markets too. However, until we see any signs of reversal one should trade with a buy on dip approach in the index. FII’s had bought equities in the cash segment on Tuesday and have formed fresh long positions as well which is a positive sign. In options segment, 18000 put in Nifty and 43000 put option in Bank Nifty have decent open interest build up which would be seen as supports on the weekly expiry day.

Indices witness pullback ahead of FED event, midcaps outperform
    

The above data and the chart structure indicates just a correction within an uptrend in the index. Hence, one can look for buying opportunities in the index on declines towards the support zone.  On the other hand, one should keep focusing on the stock specific opportunities from the cash segment as the outperformance is likely to continue there.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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