Market Outlook for 16 May 2024

Nifty started Wednesday’s session on a positive note, but it witnessed resistance around 22300 mark and then consolidated in a range throughout the day. It gave up the morning gains and ended marginally negative around 22200.

In last three trading sessions, Nifty witnessed a pullback move from the low of 21800 and it resisted around 22300 which is the 50 percent retracement mark of the recent fall and the hourly 89 EMA. However, the broader markets continued to see buying momentum and hence, the market breadth was healthy. As we witnessed a swing low of 21825 at the 100 DEMA support, and the index confirmed a reversal pattern there, it is better to stay with the broader trend and look for buying opportunities on intraday declines till this support is intact. FIIs have short heavy positions which could come to cover in the near future, which could lead the indices higher. One should keep stop loss below 21800 now on long positions, and trade with a positive bias. A move above 22300 should lead the index towards 22420 where the 61.8 percent retracement is seen.

                                            Nifty turns lower ahead of weak global cues

Nifty, Bank Nifty Levels and  FINNIFTY Levels: