Nifty Outlook - 08 September 2022

The global markets had corrected and SGX Nifty was indicating probability of a gap down opening. The index opened on a negative note around 17500, but the damage was not as severe and the index gradually recovered most of the losses to end above 17600 with a marginal loss.

Nifty Today:

During last week, Nifty had seen a sharp upmove in Tuesday’s session but since then, the index has consolidated within that day’s range and hence have not seen any directional move. This seems to be a time-wise corrective phase and there’s stock specific momentum seen. The market breadth has been positive but inspite of that, the index has been restricted to move higher. This is primarily because of factors such as the Rising Dollar Index, short formations by FIIs in the index futures segment and weak global markets. The index is now trading within the range of 17800-17400 and a breakout beyond the same is required for a directional move. Hence, until we see a breakout on either side, traders are advised to be stock specific and avoid index directional trades. The intraday supports for Nifty for the coming session are placed around 17520 and 17420 while resistances are seen around 17690 and 17760.

Indices continues consolidation, Pharma basket poised for an upmove

Amongst sectoral indices, the Pharma index seems to be well poised to play its defensive role and hence stocks within the pharma sector could see a decent upmove. Traders can look for trading opportunities from this basket for short term gains.

Nifty & Bank Nifty Levels: