Nifty Today Outlook Report - 06 July 2022

Nifty started the session with a gap up above 15900 and rallied higher during the day to reclaim the 16000 mark. However, in the later part of the session the index corrected from the highs and it gave up all the gains to end the day tad above 15800 with a marginal loss.

Nifty Today:

After consolidating in a range for six trading sessions, Nifty gave a breakout from the range with a gap up today, but the momentum fizzled after hitting the 16000 mark and Nifty corrected to fill the intraday gap at close. On the daily chart, the Nifty index has retraced 50% of the recent corrective phase from 16800 to 15200 and hence 16000 was an important hurdle. An up move in the U.S. Dollar index led to a correction in our markets as recently we have seen a strong inverse correlation between Nifty and the Dollar Index. The INR surpassed 79.20 mark and further depreciation in the rupee will certainly not bode well for equities.

Nifty gives up gains from the resistance of 16000

Hence, traders should keep a close tab on the currency movement along with the global market momentum which will drive the equities in the near term. As far as levels are concerned, we have hit an important hurdle of 16000 and Nifty needs a close above the same now for any further strength. On the flipside, the rising trendline support of the recent pullback move is placed in the range of 15650-15600. Traders are advised to avoid aggressive positions and watch out for further signs for short term trend.