Nifty Outlook for 16 May 2023

Ruchit Jain

Last Updated: 16th May 2023 - 10:52 am

Inspite of the negative cues from SGX Nifty, Nifty started trading for the week marginally positive and then it rallied higher along with a positive movement in the broader markets. Nifty registered high of over 18450 and ended the day around 18400 with gains of about half a percent.

Nifty Today:

Our markets continued with the recent momentum and rallied higher to 18450 led by momentum in the broader markets. The Bank Nifty index is now just a kissing distance away from registering a new record high and has ended comfortably above the 44000 mark. During last week, we had mentioned in our report about the probability of 18450 target zone for Nifty as it is the 78.6 percent retracement of the previous downmove. Now while the index has achieved that, there are no signs of reversal as of now and it needs to be seen if we see any profit booking in the coming session from this hurdle or we continue to inch higher. The momentum readings on the Nifty daily as well as the hourly charts are positive and hence, one should continue to trade in the direction of the trend until we get any negative signs there.

Market shrugs off negative cues; Bank Nifty approaches new record high

On the lower time frame charts, the index is seen trading in a rising channel with supports placed at 18300 and 18250. On the higher side, 18450 is the retracement hurdle which if crossed, then it would lead to a continuation of the rally towards 18650 in the short term.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

	Nifty Levels	Bank Nifty Levels	FINNIFTY Levels
Support 1	18300	43800	19485
Support 2	18250	43500	19390
Resistance 1	18480	44260	19660
Resistance 2	18550	44450	19730

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