Nifty Outlook 2 Feb 2023

Ruchit Jain Ruchit Jain

Last Updated: 2nd February 2023 - 10:28 am

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Nifty started the budget session on a positive note and it rallied higher soon after the budget to mark a high of 17972. However, all of a sudden the market witnessed selling pressure from higher levels and it broke all its support one after another and almost tested 17350 mark. However, it was not done yet, the volatility was so high that it recovered from the lows and ended the day above 17600 with a marginal loss. 

Nifty Today:


It was one of the toughest days for intraday traders as the markets witnessed significant volatility on both sides. The index first rallied higher where the resistance of 18000 played its role and it corrected from there towards the support range of 17400-17350. Infact, the support zone too played its role well as the index rebounded to end above 17600. Now this was the broad trading range for the markets as per the options data as well. But the market mood seems to have spoiled post budget because of the continuation of sharp correction in the Adani group stocks which was not expected post the successful closure of its FPO yesterday. As we have been mentioning since few days, FII’s selling in the cash segment as well as the index futures segment is one of the major concern for the short term and until they start covering their short positions, our markets are likely to witness such underperformance. Their ‘Long Short Ratio’ is just around 18 percent (as on Tuesday’s close) and when will they cover their shorts needs to be seen.


Market witnessed intense volatility on Budget day    


Nifty Outlook 2nd Feb 2023 graph


Technically, Nifty has been trading in a falling channel since last few weeks wherein 17400-17350 is the support range. On the higher side, 18000 is the resistance and we may continue to trade within this broad range. Intraday traders should focus on being very selective in picking stocks and avoid aggressive positions for time being.


Nifty & Bank Nifty Levels:


Nifty Levels

Bank Nifty Levels

Support 1



Support 2



Resistance 1



Resistance 2




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