Nifty Outlook for 9 May 2023

Nifty started trading for the week marginally positive, but it surprised traders with a sharp rally throughout the day and it surpassed the last week’s high of 18065 and even ended the day above it.

Nifty Today:

The markets surpassed last week’s high with an ease which not many would have anticipated looking at Friday’s correction. This is a sign of a strong trended phase where every dips are getting bought and the broader markets (midcaps and small caps) are witnessing good buying interest. Hence, until any reversal is seen, the trend continues to be positive and thus traders should continue to trade in the direction of the trend. However, on the hourly time frame charts, the RSI is not making a new high along with the price which is a sign of divergence. Now whether the divergence would turn into reversal needs to be seen and hence, one should keep a close tab on the same. The immediate supports for Nifty are placed around 18200 and 18120 while resistances are seen around 18325 and 18400. The FINNIFTY index witnessed positive move led by stocks such as BAJAJ FINANCE and other NBFC stocks For this index, 19245/19130 will be seen as an important support for the weekly expiry day while 19435/19540 will be the resistances to watch for. 

                                                                                         Market witnessed sharp rally to surpass last week’s high

Amongst stock specific moves, the large cap cement stocks have been witnessing increasing volumes along with a positive price action. Hence, short to medium term traders can look for stock specific opportunities within this space.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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