Nifty Outlook 21 Feb 2023

Ruchit Jain

Last Updated: 21st February 2023 - 11:42 am

Nifty started the week around the previous week’s close, but the banking stocks continued its corrective phase which dragged the benchmark lower. Nifty ended the day tad below 17850 with a loss of over half a percent, while the Bank Nifty index posted a loss of another percent and ended around 40700.

Nifty Today:

After the recent breakout during the last week, Nifty has given up some of those gains in last three sessions mainly because of the weakness seen in the banking space. Nifty is trading around its crucial support zone of 17800 and hence, next couple of sessions would be crucial to see if the index recovers from this support. While the banking space dragged the markets lower, the broader markets witnessed stock specific buying interest which led to some relative outperformance in the Nifty Midcap index. Hence, traders are advised to look for stock specific opportunities from a near term perspective. The FII’s ‘Long Short Ratio’ in the index futures segments is around 25 percent and it would be crucial to see if they cover their shorts before expiry or rollover their positions.

Banking continues to drag markets; outperformance in selective midcaps

The immediate supports for Nifty are placed around 17800 followed by 17740 and 17630 while 18000-18100 would be the immediate hurdle as per the options data.

Nifty & Bank Nifty Levels:

	Nifty Levels	Bank Nifty Levels
Support 1	17770	40430
Support 2	17700	40150
Resistance 1	17960	41135
Resistance 2	18075	41570

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