Nifty Outlook for 27 July 2023

Ahead of the expiry, Nifty started on a positive note above the previous days’ high. The index traded within a range post open, but it maintained its positive bias and ended the day around 19780 with gains of half a percent. The Bank Nifty witnessed a relative underperformance for most part of the day, but it recovered gradually towards the end and managed to close above the 46000 mark.

Nifty Today:

It was another day of stock specific momentum for the market as the indices consolidated in a range. The broader markets continued to witness buying interest and hence, the Nifty Midcap index managed to end at record high. Nifty has seen a minor correction in last few sessions and has done with the minimum retracement of the previous upmove. The retracement support is placed in the range of 19700-19600 from the index has seen a pullback for now. Now till this support is intact, the index could either see some time correction or resume its uptrend to surpass the recent high. The buying interest in the broader markets hints at a continuation of the uptrend and thus, traders should look for stock specific opportunities and trade with the trend. Market participants will be eyeing the outcome of the FED policy tonight which could have an impact on our markets tomorrow. Also, since the quarterly results are being announced, a lot of stock specific volatility is seen which would continue in the near term. As far as derivatives data is concerned, FII’s have long positions in the index futures segment. The options data hints at support at 19700 for the expiry day while open interest data is scattered in 19800-20000 call options.

      All eyes on FED decision; while Nifty attempts recovery from support of 19600

To sum up, FED event could have an impact at the open tomorrow but the broader trend remains positive and 19700-19600 will be seen as the immediate support range. Traders are advised to trade with the trend and look for stock specific buying opportunities.

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

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