Nifty Outlook 25 Jan 2023

Nifty started the day on a positive note but it continued to consolidate within the recent range. The index was unable to surpass the hurdle of 18200-18250 and gave up the opening gains to end tad above 18100, around the previous day’s close.

Nifty Today:

The markets continued to consolidate within the range that we have been witnessing since last few days. On upmoves, 18200-18250 has been acting as a resistance for Nifty while the immediate support is placed around 18000. The India VIX is trading below 14 which indicates low volatility and the options writers are seen selling options which indicates they expect the consolidation to continue. However, if we look at the data, there no negativity seen as the U.S. markets have manage to protect their supports inspite of last week’s volatility, the Dollar index continues to trade at lower levels and the INR has appreciated recently, the data such as CPI and IIP which were announced recently were positive and the FII’s also have covered their short positions in the index futures and their ‘Long Short Ratio’ is now around 55 percent. Thus, the data does not indicate that we would see significant downside from here but only thing needs to be seen is when will the index give a breakout beyond the recent consolidation phase. With few day’s left for the Union Budget, we anticipate a directional move soon and looking at the data, traders should look for buying opportunities in this consolidation phase and buy stocks from a positional perspective.

Index continues its consolidation, stock specific action seen     

The intraday supports for the coming session are placed around 18050 and 18000 while resistance is in the range of 18200-18250. Post a breakout beyond the range, we could then see a trended move in the index and hence, traders are advised to position their trades accordingly.

Nifty & Bank Nifty Levels: