Nifty Outlook 10 Jan 2023

Nifty Outlook for 10 Jan
Nifty Outlook for 10 Jan

Market Outlook
by Ruchit Jain Last Updated: 2023-01-16T15:20:02+05:30

The upmove in the global markets led to a positive sentiment for our markets at open and in line with the same, Nifty started the new week with a gap up opening around 17950. The index witnessed buying interest and it rallied higher to end the day around 18100 with gains of 240 points over last week’s close.

 

Nifty Today:

 

Post last three day’s correction in the indices, the momentum readings on the lower time frame had reached the oversold zone and hence a pullback rally was much on the cards. The upmove in the global markets led to a positive sentiment which provided impetus to the momentum. If we look at derivatives data, FII’s had about 60 percent of their positions in the index futures on the short side, but they have not formed any fresh shorts in last two days of the previous week. The positivity in the global markets may lead to covering of their existing short positions. The call option writers too had to run to cover their positions post the gap up today which turned favorable for an upmove. The momentum readings gave a positive crossover and technically, Nifty has now formed a good support base in the range of 17900-17800. Till this support is intact, the structure looks positive and the index heavyweights may lead to a short term upmove in the market. The option writers have now formed decent positions at 18000 put due to which buying interest was seen in intraday dips towards the support. On the higher side, the ’20 DEMA’ hurdle is around 18170 followed by the recent consolidation high at 18265. We expect these resistances to be cleared soon which would then lead the index towards 18330 and 18460 in the short term.

 

Global markets leads to positive trend in index

 

Global markets leads to positive trend in index

 

In Monday’s session, all the sectoral indices ended positively indicating a broad based buying interest. The reaction to the TCS results could set a tone for the IT sector which has already corrected and is trading near support.

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17977

42275

Support 2

17910

41965

Resistance 1

18170

42800

Resistance 2

18265

43025

 

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About the Author

Ruchit Jain is Lead Research Analyst at 5paisa. He has a vast experience of 14 years in this field and is proficient in Technical and Derivatives Research. He has completed his CMT (U.S.A.) and has done Masters in the field of Finance at Mumbai University.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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