Nifty Outlook 12 Jan 2023

Nifty Outlook 12 Jan 2023
Nifty Outlook 12 Jan 2023

Market Outlook
by Ruchit Jain Last Updated: 2023-01-12T11:32:09+05:30

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

 

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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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