Nifty Outlook for 10 May 2023

Nifty traded with a positive bias for most part of the day on Tuesday, but it gave up the gains during the later part and it ended on a flat note. The BankNifty index witnessed some negativity towards the end and closed below 43200.

Nifty Today:

It was a range bound trading session for the indices as the markets did not witness any significant move and the market breadth also was even-steven. The near term trend continues to be positive as the important supports are intact, but the lower time frame charts are showing some negative divergence as the new highs in prices on the hourly charts have not been confirmed by RSI. Also, the Nifty index has surpassed last week's high but the Bank Nifty index hasn’t, which is another divergence. Usually, such divergences post a rally gives early signs of a probable corrective phase. Hence, traders should avoid aggressive longs here and rather wait for a dip towards important supports.

                                        Market consolidates in a range, signs of some profit booking

The IT stocks witnessed some pullback move which provided some support to the benchmark. Now as far as levels are concerned, important support for Nifty is placed around 18170 below which, the index can retest the last week's low of 18050. On the higher side, 18400-18500 is the resistance zone. Traders are advised to avoid aggressive longs and rather trade with a stock specific approach.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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