NIFTY BANKNIFTY OUTLOOK & TRADING TIPS FOR F&O 18 JAN 2023

The Nifty50 recouped all of its losses from the previous few days on January 17, adding more gains throughout the day to close above the psychological 18,000 level for the first time in six consecutive sessions. Sensex climbed 562 points, or nearly 1%, to 60655, while the Nifty was also up nearly 1%, to 18053. One of the main reasons for today's stock market rally was the government's decision to cut the windfall tax on crude oil, which lifted sentiment from oil and gas companies. Another reason that lifted sentiment on Dalal Street was the sobering wholesale inflation, which was below 5% in December.

Equity markets are likely to come under pressure in the near term as foreign institutional investors continue to increase selling pressure. The spillover effect of the global economic slowdown, rising inflation and weak investor sentiment ahead of Union Budget 2023 could also weigh on sentiment on Dalal Street. The index has formed a long bullish candle on the daily charts forming a higher high-low formation for the third consecutive session, suggesting the possibility of further uptrend in the coming sessions. If the index continues its uptrend and closes decidedly above 50 DEMA (daily exponential moving average - 18100) then there could be a possible move towards 18150-18250 with crucial support at 17950-17850. Technically, the market has formed a bullish candle on daily charts and a higher bottom formation on intraday charts, suggesting further upside from the current levels.

Resistance: 18100, 18150, 18200

Support: 18000, 17900, 17800