Nifty Outlook for 6 June 2023

After a gap-up opening, the nifty index traded higher throughout the day and settled at 18593.85 levels with a 60 points gain. While, Banknifty inched up by 0.37%, and closed at 44101.65. On the sector front, Nifty Auto & Media has contributed more than 1% gains, followed by the Metal and Commodities indices. While PSUBANK, FMCG & IT dragged slightly for the day. However, stock specific action has been witnessed in Midcaps & Small cap stocks.

Nifty Today:

Overall, the nifty index has been trading in Higher Highs & Higher Lows formation with a positive bias since long and hovering above 20-DEMA, which indicates continued support for the recent trend. In the prior week, nifty had slipped from a weekly high and taken support at rising Trendline on the daily chart.

On the derivatives front, we observed that there was a tough fight between bull and bear at 18600 levels as both were trying to dominate over each other. While the highest Call option OI was seen at 18700 strike price and on the put side, the highest OI was at 18500 strike price.

                                                               
                                                                                Nifty holds gain, support by positive global cues

Momentum indicator RSI is at 65 levels with a positive crossover on the daily timeframe. Moreover, another indicator, the Bollinger Band, is also supporting the bullish trend on the chart.

Hence, we are expecting a sideways to bullish move in the index until it breaks the import support of 18450 levels. Once it remains below it, one should expect some correction in the index for the near term.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

​