Market Outlook for 18 October 2023
Nifty started the day on a positive note on the back of positive global cues. The index then traded within a range and ended the day above 19800 with gains of about half a percent.
Our market has been gradually moving higher and is forming a higher support base with the upmove. The recent swing low at 19635 is now seen as the important support and the index is trading around the hurdle of 19850-19880 which is the 61.8 percent retracement of the recent correction. Also, the Bank Nifty index has been consolidating in a range since last couple of weeks where a trendline resistance is seen around 44600 level. A breakout above the mentioned resistances in both the indices could lead to a directional upmove and hence, short term traders can look for buying opportunities above these levels. Although FIIs have not been forming fresh short positions now, much of their short positions formed at the start of this series are still intact as their ‘Long Short Ratio’ is around 27 percent only. If the indices breach the mentioned resistances, then there could be short covering of these positions which would then provide support to the ongoing momentum.
Slow and gradual upmove in Nifty, overall market breadth healthy
The broader markets have been doing well as the overall market breadth is healthy. Traders should continue to look for stock specific buying opportunities and trade with a positive bias until the index breaks the important supports.
|Nifty Levels||Bank Nifty Levels||FINNIFTY Levels|
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