Nifty outlook, Bank Nifty outlook today, Thursday, 8 June 2023; check support, resistance

Stock Market Today, Nifty, Bank Nifty: Benchmark indices may remain volatile on Nifty 50 F&O expiry and as investors and traders wait for the Reserve Bank of India (RBI) monetary policy committee’s (MPC) interest rate decision, which is scheduled to be announced today. The Nifty futures on the Singapore Exchange (SGX) were trading 15.5 points or 0.08% higher at 18,827.5 in today’s early morning trade. Asian markets were trading mostly in red – Hong Kong’s Hang Seng fell 0.5%, China’s Shanghai Composite index dipped 0.09%, South Korea’s KOSPI fell 0.3% while Japan’s Nikkei 225 rose 0.07%. The US market ended the overnight session mixed – Dow Jones Industrial Average (DJIA) rose 0.27%, S&P 500 fell 0.38% and the tech-heavy Nasdaq tanked 1.29%. On Wednesday, the NSE Nifty 50 gained 127.40 points or 0.68% settling at 18,726.40 and BSE Sensex skyrocketed 350.08 points or 0.56% to 63,142.96. In sectoral indices, Bank Nifty soared 110.75 points or 0.25% to 44,275.30, Nifty FMCG surged 571 points or 1.12% to 51,609.40, Nifty Metal jumped 90.30 points or 1.51% to 6,057.75 and Nifty Realty zoomed 7.90 points or 1.59% to 506.30.

NSE Nifty 50 Outlook

Nifty support at 18623-18675

Buy Nifty on intraday dip if any – View bullish on 18600. First support at 18623 and then 18675 while resistance at 18738 and then 18888, according to Rahul Sharma, JM Financial.

Nifty OI data

“Nifty weekly expiry option chain witnesses maximum overall exposures at 18700PE and 18900CE – each with over 2 lakh OI contracts. 18700PE also adds more than 2 lakh Oi fresh, with various immediate CE writers are active with more than 1.5 lakh OI contracts.  PCR_OI at 18700 is almost 1.5, which is important to monitor, as sustenance here will lead to new highs on the index,” said Shilpa Rout – Derivatives Lead Analyst, Prabhudas Lilladher Pvt Ltd.

Nifty could rally till 18800-18875 if it breaks 18650

“Nifty clearing the important resistance level of 18650 may intensify the positive momentum. A bullish candle and a higher bottom formation clearly indicate a further uptrend from the current levels. For the breakout traders now, 18650 would be the key support level to watch out for. Above this, the market could rally till 18800-18875. On the flip side, below 18650,  the uptrend would be vulnerable and below the same, the index could retest the level of 18600-18550,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.

Nifty may target 18800 level

“Nifty has closed above the previous swing high (18662) on the daily charts, which indicates that it has started the next leg of the upmove. It has the potential to target levels of 18800 and thereafter the all-time high of 18889. The daily momentum indicator has also triggered a positive crossover which is a buy signal. Thus, both the price and momentum indicators are suggesting a continuation of the upmove. In terms of levels, 18620-18580 shall act as the crucial support zone while the hurdle zone is placed at 18800-18889,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.

Nifty may target all-time high of 18887.60 with 18800 serving as immediate hurdle

“On the daily chart, a congestion breakout is observed, resembling a confirmation of the ‘FLAG’ pattern on a daily time frame. Based on this configuration, it is anticipated that Nifty may target the all-time high level of 18887.60 in the upcoming sessions, with 18800 serving as an immediate hurdle. While volatility may arise due to the RBI policy event, overall sentiment is expected to remain positive. The immediate support zone lies within the bullish gap created today, ranging from 18620 to 18640,” said Rajesh Bhosale, Technical Analyst at Angel One Ltd.

RBI’s dovish stance may contribute to positive sentiment in market

“Nifty has recently experienced a positive breakout from a sideways pattern, which is seen as a favourable development. Market participants are anticipating a dovish stance from the RBI governor, contributing to positive sentiment in the market. Technically, support for the Nifty is positioned at 18650, while resistance is expected around the range of 18880-18900,” said Rupak De, Senior Technical at LKP Securities.

Bank Nifty Outlook

Bank Nifty support at 44318-44247

Bank Nifty 45,000 on the cards – Best to play with options. PSU Bank could come to the party. First support at 44,318 and then 44,247 while resistance at 44,443 and then 44,496, according to Rahul Sharma, JM Financial.

Bank Nifty OI data

“Bank Nifty weekly expiry option chain data reflects on 44000PE holding more than 2 lakh OI contracts, followed by 44200PE – more than a lakh contracts. CE writers witnesses aggressive positions at various immediate strikes adding more than a lakh OI contracts all the way up till 45500 strike, with 44500CE posing as an immediate hurdle. PCR_OI at 44200 is just hovering around 1 and is crucial to keep on the radar for further understanding of the direction on the index,” said Shilpa Rout – Derivatives Lead Analyst, Prabhudas Lilladher Pvt Ltd.

Bank Nifty may see strong upside moves above 44500

“Bank Nifty’s undertone is still bullish, maintaining the support of 44000 in a spot where a decent amount of Put writing is seen and resistance is still intact at 44500. After the central bank policy, the Bank Nifty is expected to give a move on either side. Upon a decisive move 44500 we might see strong directional upside moves,” said Rupak De, Senior Technical at LKP Securities.

Bank Nifty may move towards 45000 if it closes above 44350-44400

“If Bank Nifty closes above the range of 44350-44400 it will start moving towards 45000 in the coming weeks. The resistance is at around 44350-44400 and the support is at around 44000-44100 till the time Bank Nifty breaks this range it is expected to remain sideways. The undertone remains bullish and the buy-on dip strategy can be implemented. Technical indicator RSI is at around 62 and is showing strength by sustaining above 50 levels,” said Mitesh Karwa Research Analyst at Bonanza Portfolio Ltd.

Bank Nifty may target levels of 44500

“Bank Nifty held on to the support of the 20-day moving average (43800) and the 61.82% Fibonacci retracement level (43800) of the previous rise(43390–44448)  is witnessing buying interest. The daily momentum indicator has a negative crossover which can lead to a consolidation in the short term however the overall trend continues to remain positive. On the upside we expect it to target levels of 44500,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.