Nifty Outlook for 6 July 2023

The indices traded in a narrow range in Wednesday’s session, but the stock specific action was positive as the broader markets continued to witness buying momentum. Nifty ended the day around 19400 with marginal gains, while the Bank Nifty index ended with a marginal loss of one-third of a percent.

Nifty Today:

The Nifty and the Bank Nifty index traded in a narrow range but the stock specific action was robust and the midcaps outperformed the benchmark index. The Nifty index has not breached its previous day’s low for last six trading sessions and inspite of the overbought set ups in the momentum readings, there are no signs of any reversal yet. It is often seen that when the trend is strong enough, the market continues the move in the overbought zone too. The strength is clearly visible through the stock specific buying interest and hence, until we see any signs of reversal, traders are advised to continue to trade with the trend. The immediate support for Nifty is placed around 19300, and only if this is breached then we can see some pullback move else the upmove would continue. On the Bank Nifty index, the index has traded with the range of the ‘Doji’ candle formed in previous session in which the support has been formed at 45000 mark. Thus, this will be seen as the intraday support for the coming session. A close below 45000 could lead to some retracement in the banking index and till then the momentum remains positive. Traders are advised to continue to trade with a positive bias and look for stock specific buying opportunities.

                                                                Stock specific buying interest kept trend intact

The derivatives data too is bullish as the FII’s have above 70 percent of the positions in the index futures segment on the long side. They have been buying in the cash segment too and such a combination of buying cash segment and long formation in the derivatives segment has led to a positive move in the past as well.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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