Nifty Outlook for 18 May 2023

Nifty Outlook for 18 May 2023
Nifty Outlook for 18 May 2023

by Ruchit Jain Last Updated: May 18, 2023 - 03:44 pm 1.5k Views
Listen icon

Nifty continued with its previous day’s corrective phase and corrected towards 18100 level. It recovered some of the losses from the lows towards the end, but ended below 18200 with a loss of over 100 points.

Nifty Today:

Post the recent upmove, the Nifty index witnessed some cool-off in last couple of sessions. The momentum readings on the hourly chart as well as the daily chart are indicating a corrective phase. Now, whether this correction will turn out to be a deeper retracement or just a small correction needs to be seen. As of now, the 20 DEMA support will be a crucial support which is placed around 18080. In derivatives segment, we have not seen any significant new positions in this series so far.

                                                              Indices extend correction, approaching crucial 20 EMA support

Nifty Outlook Graph 18th May

Hence, since the broader market's momentum is still positive it is quite possible that the dip will witness buying interest around the support. Now the 20 DEMA support is around 18080, we could see pullback again from this support in case this correction just pans to be a time-wise correction. However, a close below the 20 DEMA will indicate possibility of a deeper correction towards the next support of 17900 then. FII’s have been buying in the cash segment this month and have bought equities worth Rs. 16000 crores so far. But their index futures positions are neutral so far and hence, one should keep a tab on how new positions are formed in the near future. In the options segment, the call writers have added positions at 18300-18400 strikes which would be the immediate resistance range for the weekly expiry day. 

Traders are advised to keep a buy on dip approach until the index breaks any important supports mentioned above.   
 

Nifty, Bank Nifty Levels and FINNIFTY Levels:

 

Nifty Levels

Bank Nifty Levels

           FINNIFTY Levels

Support 1

18080

43430

                     19150

Support 2

18000

43200

                     19100

Resistance 1

18300

44000

                     19400

Resistance 2

18400

44250

                     19460

How do you rate this blog?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

oda_gif_reasons_colorful

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.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Swing Trading Stocks: Week of 01 April 2024

Swing Trading Stocks for the Week

Weekly Market Outlook for 1st April to 5th April

The week gone by was a truncated week of three trading sessions, but it was not short of any action as the index witnessed a smart recovery in three days. Nifty almost tested the previous all-time high above 22500 on the expiry day and ended just above 22300 with weekly gains of a percent.

Stock in Action – Bajaj Finance

Bajaj Finance Movement of Day