Nifty Outlook 20 Jan 2023

Nifty Outlook 20 Jan 2023
Nifty Outlook 20 Jan 2023

Market Outlook
by Ruchit Jain Last Updated: 2023-01-20T10:26:02+05:30

The U.S. markets corrected sharply on Wednesday which led to a negative sentiment and hence our market started trading for the weekly expiry day on a negative note. However, the index consolidated within a narrow range throughout the day and ended around 18100 with a look of one-third of a percent.

 

Nifty Today:

 

The negative sentiment from the U.S. markets led to a negative opening for our markets. But the impact was limited as the Asian markets had not reacted much and hence, our market did not witness any sharp correction. Also, the Nifty has given a breakout from a consolidation phase this week and hence, declines towards the support are now likely to witness buying interest. The FII’s have covered their short positions in last couple of sessions which was the major factor behind our market's underperformance recently. Their ‘Long Short Ratio’ has now increased to around 50 percent which was about 38 percent. Hence, the chart structure as well as data are not negative  now. Thus, until we see any short formations again, traders should trade with a positive bias and look for buying opportunities on such intraday declines. The momentum readings are in Buy mode for Nifty while still showing sideways momentum for the BankNifty index. It would be crucial to see if Bank Nifty too surpasses its recent consolidation phase and takes the leadership again. The immediate support for Nifty is placed around 18050, followed by 18000-17950 range. On the higher side, 18250 and 18330 would be the short term levels on the upside to watch for.

 

Market consolidated on weekly expiry day, PSE stocks gaining momentum

 

Nifty Outlook 20th Jan 2023 graph

 

Certain PSU stocks have started gaining momentum again and thus the NIFTY PSE index is gradually moving towards the previous high. Traders can look for stock specific opportunities from this space where selective stocks can see decent outperformance in the near term.

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

18050

42200

Support 2

18000

42085

Resistance 1

18200

42500

Resistance 2

18200

42630

 

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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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