Weekly Market Outlook for 1st January to 5th January

Nifty had a stellar up move in the month of December and it ended the month around all-time high above 21700. The benchmark index posted monthly gains of almost 8 percent while all other indices too participated in this upmove. 

Nifty Today:

It was not only the December month, but equity market participants had a significant year 2023 where the Nifty bottomed around 16800 in the month of March, and it started an uptrend where there was no looking back. The year 2023 ended on a high note with Nifty posting 20 percent gains in a year. Although all the indices participated in this uptrend, the Realty and the PSE stocks were the show stoppers as these indices posted yearly gains of around 80 percent. Now as we head into the January month, it will be important to focus on the data as the index is trading in the overbought zone, but there are no signs of reversal yet. Hence, the momentum could continue in the near term where the index could rally towards 21970 which is the retracement level on the short term charts. In the derivatives segment, decent long rollovers were seen from December to January series while FIIs have started the series with long positions of about 70 percent. The immediate support for the Nifty is placed around 21550-21450 range and till the index trades above the same, one should continue to trade with a positive bias. 

Nifty ends 2023 on a high note, Realty and PSE stocks outperformed

However, since the RSI readings are quite overbought, we may not see a swift upmove like the one which we saw in the December month. Hence, one should trade with proper risk management and also look for some profit booking at higher levels around 22000 on trading positions.  With markets entering the New Year on an optimistic note, we wish you a very happy and a prosperous year 2024.
 

Nifty, Bank Nifty Levels and  FINNIFTY Levels: