Nifty Outlook for 18 Apr 2023

Ruchit Jain

Last Updated: 17th April 2023 - 05:00 pm

Post a long weekend, Nifty started the day on a negative note due to the correction seen in the IT stocks post INFY results. However, the damage was limited to the IT stocks only while the broader markets were stable and hence, the index managed to recover some of the losses from the lows and ended around 17700 with a loss of about seven-tenths of a percent.

Nifty Today:

The April month so far had seen a positive momentum mainly because of the short covering move. The index rallied sharply without breaking the previous sessions low for nine consecutive trading sessions and hence, the momentum readings on the lower time frame charts reached the overbought territory. Some cool-off was required and the correction in the IT stocks post the INFY results led to this correction. However, other sectors managed to hold well (esp.PSU Banks) and hence, the down move was limited. Now, the readings on the daily chart are positive which indicates that the short term trend continues to be positive. Hence, this correction should just be seen as a buying opportunity at lower levels. FII’s continued to cover their short positions and some longs as well and thus, their ‘Long Short Ratio’ have increased to around 39 percent. Looking at the data, we continue to advise a ‘Buy on dip’ for the benchmark while one can look for stock specific opportunities at current levels too from a short term perspective.

IT stocks dragged Nifty lower, PSU Banks outperformed

On the downside, the immediate support is placed around the 20 DEMA which is around 17470 while the near term resistance is seen in 17950-18060 range.

Nifty & Bank Nifty Levels:

	Nifty Levels	Bank Nifty Levels
Support 1	17560	41840
Support 2	17470	41420
Resistance 1	17860	42640
Resistance 2	17950	43000

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