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Nifty Daily Outlook for 5-Jan-2023 (Weekly Expiry Special)

This post is not a post-market report of the previous day (4th Jan), but this technical analysis report is an assumption suggestion for the most probable trade for the next day (5th Jan-2023), as per our data suggestion.

On the Nifty-50 Index, daily chart, we can see that as we suggested in our weekly technical journal for the week starting from 2nd Jan-2023, the Nifty trading in a wide range is between 17600 to 18600.

Nifty-50 Index Outlook for 5th Jan-2023

The Nifty-50 Index closed today at the end of the day at 18042.95.

Today the minutes of the FOMC meeting can drive the US Market volatile, which will impact our Indian Stock Market tomorrow morning.

We can try to asses the daily market in three scenarios:

1. If the Market Opens a GAP-UP: Suppose the market opens Gap-up, let us assume 18125, so our data suggest that the Nifty-50 Index can go up to a maximum of 18130 to 18186, and if breaks 18186, it can touch 18247 to 18300. At any 5 minutes bearish candle, the traders should try to find the bearish trade with a Stop loss of 18130 for the target of 18040.

2. If the Market Opens a GAP Down: Avoid trading in the first place, But if a trader still wants to trade then, if the Nifty-50 Index opens Gap down, And if the market breaks down the 18000 level decisively with volumes, then the traders can take the trade with a strict Stop loss of 18040 for the target of 17800 levels. But this is suggestible to take trade only in the Next Expiry instead of the current expiry.

3. If the Market opens in a Flat Range: This could be the best scenario, where the market can move both sides. The traders can take trade in the range of 18040 to 18300. If the market breaks down 18025, in initial trading minutes, then scenario number 2 can be considered with strict stop loss.

And if the market directly opens up 18125, then with the strict stop loss of 30-40 points the traders can take trade for both sides. In bearish trade if upside the stop loss hits, it means the market can go up to 18300, but if in bullish trade stop loss hits, it means the market can go downside up to 18040 level.

Tomorrow is the weekly expiry day and generally, markets could be volatile, and due to the FED meeting, it can be more volatile, so try to take trades in the senses with minimum quantity.

A cautious approach is advised while trading.

Note: I am not a SEBI Registered technical, so just remember, to consult your financial advisor, before taking any trade. This technical post is only for learning purposes.

Thanks for reading.

Keep Trading

Stay Invested


Neeraj Bhatia

(Managing Director)

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