Nifty Outlook - 18 Nov-2022

Nifty continued its consolidation phase and traded in a narrow range on the weekly expiry day. The index corrected marginally in the last half an hour and ended the day tad below 18350.
 

Nifty Today:

The consolidation continues for our markets as the index has not been witnessing broader markets support in this upmove. The midcap index is trading well below the previous highs while the market breadth is not strong enough to lead any broad market momentum. Although, certain large cap stocks have been leading the indices and hence this recent consolidation in last few days should just be seen as a time-wise correction within an uptrend. The RSI Smoothed oscillator which had given a positive crossover in early October is still in Buy mode and has not given a negative crossover yet. The index too is defending its crucial supports on declines and hence, until we see any negative crossovers in the oscillator or a breakdown of important supports traders should avoid contra bets on the index and look for buying opportunities on declines towards support. The important support for Nifty is placed in the range of 18300-18250 followed by 18000 level. On the flipside, if the index resumes the momentum from here, then we expect the index to march towards its all-time highs soon.

Nifty continues to consolidate amidst lack of broad market participation

Traders are advised to continue to trade with a positive bias, but be very selective in picking stock specific opportunities and avoid bottom fishing in the underperforming names.
 

Nifty & Bank Nifty Levels: