Nifty Outlook 12 Jan 2023

Nifty Outlook 12 Jan 2023
Nifty Outlook 12 Jan 2023

by Ruchit Jain Last Updated: Jan 12, 2023 - 11:32 am 4.7k Views
Listen icon

Nifty traded within a range of 150 points ahead of the weekly expiry day, but it witnessed high volatility with moves on both sides within the range and finally it ended around 17900 with a marginal loss.

 

Nifty Today:

 

The index traded in a range but the intraday volatility was too high to manage for day traders. Recently, the index has traded within a range where 17800-17770 has acted as a support while the ’20 DEMA’ has been a resistance on pullback moves. The index is now close to the support end of the range and similarly the Banking index too is near its short term support. FII’s have been on the short side of late and they have been selling in the cash segment too which has been the main reason for the recent correction. In the options segment, 17800 put options have the highest open interest while 18000-18100 call option have good open interest outstanding. This indicates that traders are expecting the index to trade within this range and only a breakout beyond the same will lead to the next directional move. Traders are advised to avoid forming shorts at the support end and 17770 as reference levels for long positions. In next couple sessions, we could see the market giving clarity on the next directional move as there are important events such as CPI data in India and US lined up. 

 

Nifty oscillates in a range, 17770 make or break level

 

Nifty traded within a range of 150 points ahead of the weekly expiry day.

 

The next directional move for Nifty will be seen only on a breakout beyond the above mentioned range and till then consolidation could continue. Traders are advised to trade with a stock specific approach for now and look to take positional bets only post a breakout on either side. 

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17820

41870

Support 2

17770

41500

Resistance 1

17970

42460

Resistance 2

18050

42680

 

How do you rate this blog?

or

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

oda_gif_reasons_colorful

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.
Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Weekly Outlook on Copper - 01 December 2023

Copper prices saw a modest 0.33% gain, reaching 722 on Thursday, as worries about a slowdown in Chinese manufacturing loomed large. The November's NBS Manufacturing PMI slipped to 49.4, the second consecutive monthly decline, heightened concerns, emphasizing the need for additional government support to fortify China's economic growth. The NBS Non-Manufacturing PMI at 50.2, reflecting the 11th month of service sector expansion, hinted at a softer pace.

Swing Trading Stocks: Week of 04 December 2023

Swing Trading Stocks for the Week

Weekly Market Outlook for 04 December to 08 December

Our markets started the truncated week on a positive note and it rallied higher throughout the week. The first day of the December month infact witnessed a new record as the Nifty surpassed its previous high and ended in uncharted territory above 20250 with weekly gains of almost two and a half percent.