Nifty Outlook for 9 June 2023

Our markets started the day on a positive and continued the positivity in the first hour of the trade. Nifty rallied towards 18800 but fell short to reach the level and it witnessed selling in the later part of the day. The index finally ended the day below 18650 with a loss of about half a percent.

Nifty Today:

Nifty continued to inch higher during the opening hour, but post the RBI policy we witnessed some profit booking in the broader markets. Although, the outcome of the RBI meeting was much on expected lines to keep the rates unchanged, the selling seemed more due to profit booking as the midcap index was in an overbought zone post the recent run up. Now as far as chart setups are concerned, the Nifty index continues to trade in a rising channel where the immediate trendline support is placed around 18550 while the positional support (20 DEMA) is around 18450. The Bank Nifty index is trading much near to the ’20 DEMA’ which is around 43850 and the swing low support is around 43700. These levels will be crucial to watch as if the breaks the support, then some price wise correction within an uptrend can be seen. The Nifty Midcap 100 is trading in an overbought zone and hence a cool-off is possible in the midcap space in the short term.

                                                               
                                                           Midcap stocks witnessing profit booking as index reaches overbought zone 

Hence, traders are advised to be stock specific and look to buy midcap stocks on declines rather than chasing at current levels. On the higher side, 18750-18800 is the immediate hurdle for the Nifty.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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