Nifty Today Outlook Report - 02 August 2022

Nifty started the week on a positive note and continued its positive momentum throughout the day. Amidst positive moves in broader markets, the index surpassed 17300 and ended above it with gains of a percent.

Nifty Today:

It has been a relentless upmove for our markets as the index has reclaimed 17300 within a short period of time after the recent corrective phase. The broader markets have now started witnessing good buying interest due to which the breadth was positive and the midcap basket outperformed. Now although the momentum remains strong, the Nifty has reached an important juncture as it is now trading around 61.8 percent of the entire correction from 18600 to 15180. Also, the momentum readings are in an overbought zone and generally, when the index gets overbought and is near resistance, it either gives as price-wise correction or a time-wise correction. Hence, traders should now start booking profits on the long positions here and be very specific in trading. Keeping a stock specific approach with a proper exit strategy should be the approach for now.

                                Broader markets join the momentum to lift market higher

The immediate supports for Nifty are placed around 17200 and 17120 while resistance is seen in the range of 17350-17400 followed by 17500.

Nifty & Bank Nifty Levels: