Nifty Outlook - 29 Nov-2022

Nifty started the day marginally negative following the SGX Nifty, but it witnessed buying interest right from the open and the index rallied to finally conquer all-time high. The index registered a new record of 18614.25 but ended the day around 18560.

Nifty Today:

Finally the Nifty index registered a new record high after a span of about 13 months and registered a new high of 18614.25. Our markets have outperformed the global markets in turbulent times and this new milestone is certainly a moment of pride for us. The recent up move have seen major participation from the Banking and Financial sector and the IT space which have seen a sharp pullback move. The heavyweight Reliance Industries too has seen a buying interest which supported the index and infact it was the major contributor in Monday’s session to lead the benchmark to the new milestone. The trend for the index still remains positive, but the momentum readings on the hourly chart in Nifty and on the daily chart in Bank Nifty have reached the overbought zone. Generally such overbought setups need to cool-off which could lead to either some pricewise or a timewise correction in the short term. Hence, although everything seems hunky-dory at the moment, it is better not to get complacent and rather tighten the grip on money management and trade with strict stop losses. At current juncture, short term traders can also look to book profits on long positions and take some money off the table. The immediate support for Nifty is placed around 18400 while the medium term support of ’20 DEMA’ has now shifted to 18200. 

Record high in Nifty a momentum of pride for us

The Midcap 100 index has seen a relative outperformance in last couple of sessions and has seen some catch up moves. However, the index needs a breakout above 32000 mark which would mark a breakout from the Symmetrical triangle pattern. One should keep a close watch on the development here and such breakout could then lead to some good stock specific action in the near term. 

Nifty & Bank Nifty Levels: