Market Outlook for 14 May 2024

Nifty corrected in the initial hour of the trade and almost tested the 21800 mark. However, we witnessed a gradual pullback move from the morning low and it recovered the intraday losses and ended around the high of the day above 22100.

Nifty has seen a sharp correction of almost 1000 points in last few trading sessions from the swing high. We had not seen any meaningful pullback and hence, the RSI readings on the lower time frame were in the oversold zone. Also, the 100 DEMA support was placed around 21800-21850 and hence, the index witnessed a recovery from this support. It has also formed a ‘Bullish Hammer’ pattern on the daily chart which is a positive sign if the price action shows positive momentum the next day. Hence, a move above Monday high could lead to positivity in the near term. The low of 21827, which coincides with the 100 DEMA will be seen as an important support and should be seen as a key level for stop losses on long positions now. On pullback move, the resistance will be seen around the 22200-22270 range followed by 22310. INDIA VIX continued to rally higher and ended above the 20 mark. Thus, the volatility could continue to be high in the near term. Traders are advised to look for stock specific buying opportunities, but avoid aggressive positions and one should keep yesterday’s low as a reference level for stoploss on long positions at Nifty level.

                                            Nifty turns lower ahead of weak global cues

Nifty, Bank Nifty Levels and  FINNIFTY Levels: