Nifty Outlook 23 Feb 2023

Nifty Outlook 23 Feb 2023
Nifty Outlook 23 Feb 2023

by Ruchit Jain Last Updated: Feb 23, 2023 - 10:40 am 1.5k Views
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On the back of the correction in the U.S. markets, our markets started the day with a gap down below 17800 and it then corrected throughout the day along with the broader market sell-off. Nifty finally ended around 17550 with a loss of one and a half percent over previous session’s close.

Nifty Today:

 

Our markets witnessed a sell-off across the sectors as the Nifty index breached below the crucial support of 17800 which negated the recent breakout pattern. The BankNifty index was already in a corrective phase and the Nifty index too entered the corrective zone. India VIX increased by 11 percent to surpass the level of 15 ahead of the F&O expiry day. The RSIS oscillator on both Nifty as well as BankNifty is in ‘Sell Mode’ now indicating a short term corrective phase. However, the readings on the hourly charts have reached the oversold zone for Nifty as well as BankNifty where we have seen a cut of about 2000 points in last five trading sessions. Hence, to relieve these oversold set-ups a pullback move could not be ruled out in next couple of trading sessions. FII’s have been on the short side in the index futures segment throughout the February series and whether they rollover these positions needs to be seen. So looking at the above data and the chart structure, we believe that the short term momentum is negative for the markets but oversold on lower time frame. So one should avoid forming shorts at current juncture and look for a pullback move to relieve the oversold set ups. 

 

Market witnesses sell-off as Nifty breaks important support 

 

Nifty Outlook Graph

 

The important supports for Nifty are placed around 17465 and 17375 whereas resistance will not be seen in the range of 17700-17800.

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17465

39750

Support 2

17375

39510

Resistance 1

17620

40385

Resistance 2

17700

40500

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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.

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