Nifty Outlook 10 Feb 2023

Nifty traded within a narrow range on the weekly expiry day. The index witnessed a dip below 17800 in the initial half an hour but that dip witnessed buying interest as it recovered quickly and then consolidated within a 100 point range for rest of the day. Nifty ended tad below 17900, with marginal gains over previous day’s close. 

Nifty Today:

Nifty been consolidating within a range as the volatility has subsided post last week’s events. However, the undertone remains bullish as the broader markets have been witnessing buying interest and the momentum readings have given a positive crossover recently. FII’s have short heavy positions and have started covering some of their short positions in the index futures. But still, their ‘Long Short Ratio’ is around 19 percent and any further covering could lead to a positive breakout in the Nifty. The Nifty index has been trading in a falling channel and has recovered from the support end since the Budget day low. The resistance end is seen around 18000 mark and once this level is taken out, we would then see a gush of buying interest.

Nifty consolidates on weekly expiry day, buying interest seen in intraday declines    

Hence, until we get any negative signals traders should look for buying opportunities on intraday declines. The immediate support for Nifty is placed around 17770 and 17700.

Nifty & Bank Nifty Levels:

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