Nifty Outlook for 20 June 2023

Nifty started the week on a positive note and was just seven points away from hitting the new record high milestone. However, the banking index witnessed selling pressure and hence, the benchmark index corrected from the opening levels and ended the day tad above 18750.

Nifty Today:

Nifty ended in the red in Monday’s session and was few points away from hitting new highs at open. However, the Banking index has seen some selling pressure as the index breached the 20 DEMA during last week and entered a short term corrective phase. The pullback move in the Bank Nifty index on Friday marked a high around 61.8 percent retracement on the hourly charts and thus this level of 44080 become a crucial hurdle for the banking index. On the lower side, Thursday’s low of 43526 becomes a crucial support as it is around its 40 DEMA. A move below this level in Bank Nifty could then result in some further selling pressure. However, the important supports on Nifty are still intact as the index is trading in a rising channel and 18670 followed by 18570 as important supports for the Nifty index. Traders are advised to tighten their stoploss below the mentioned supports in the respective indices as below these, the index could witness some corrective phase. 

                                                                      Nifty consolidating around all-time high, banking index drags   

On the other hand, the Nifty Midcap index has continued its upmove and hit another record high. But the momentum readings on this index are in highly overbought zone and the index is trading around its retracement resistance. Hence, traders are advised to wait for the readings to cool-off in the near future which could provide better risk reward ratio for investments rather than chasing at current levels.

Nifty, Bank Nifty Levels and FINNIFTY Levels:

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