Nifty Today Outlook Report - 05 July 2022

Nifty started the day marginally negative and corrected marginally in initial few minutes. However, after making a low around 15660, the index recovered gradually and traded with a positive bias in the later part to end above 16800 with gains of about half a percent.

Nifty Today:

Nifty has consolidated within a range in last one week, however the index has managed to defend its important support of 15500 in this consolidation. The Bank Nifty index has already shown good strength and has resumed its higher top higher bottom structure. Now the Nifty is also on the verge of a breakout above its 20 DEMA resistance. This should lead to the next leg of the up move in Nifty which could take Nifty towards 16000 first and then around 16180. The market breadth was robust as many midcaps from the broader markets witnessed buying interest. The Nifty Midcap 100 index too has ended tad above its 20 DEMA resistance and hence, a follow up move above the same could then lead to a buying momentum in the broader markets. Traders are advised to trade with a positive bias and look for buying opportunities till the index is trading above its crucial supports.

Amongst sectoral indices, the Nifty FMCG index has given a breakout from its breakout from resistances and hence stocks from this space could outperform along with the broader markets.