Nifty Outlook for 8 August 2023

Nifty continued a gradual recovery from last weeks’ low and it added almost half a percent today to end just below 19600. However, the banking stocks relatively underperformed and rather the banking index consolidated in a range to end on a flat note.

Nifty Today:

Last week, Nifty registered a low around the 40-day EMA around 19300, and the index has witnessed a pullback of about 300 points from there. However, the midcap stocks are still witnessing a buying interest and thus, the midcap index too is outperforming and is again close to new highs post some pullback move in the last week. The buying interest in the broader markets indicates that the uptrend still remains intact. However, we would like to see some bullish data and the index to surpass some important hurdles before concluding that the corrective phase is over. FII’s have recently formed some short positions in the index futures segment and they hold more short positions which is not a good sign. On the other hand, the falling trendline resistance on the hourly chart and the retracement resistance is placed in the range of 19650-19730 which needs to be surpassed soon. A move above this range will confirm a continuation of the uptrend and till then, the odds are still open for some choppiness in the short term.

      Midcaps continue its rally, approaching new highs again

Hence, traders are advised to look for stock specific opportunities in the market as stocks are outperforming which provides a good trading opportunity there. The immediate support for Nifty is placed around 19500-19450 range.

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

​