Nifty Today Outlook Report - 10 August 2022

The Nifty started the week on a flat note, but it inched higher gradually and surpassed the important resistance of 17500. The stock specific momentum was positive which helped the index end comfortably above 17500 with gains of around three-fourth of a percent.

Nifty Today:

During last week, Nifty had formed a reversal candlestick pattern on the daily chart on weekly expiry session. However, the index consolidated in a range and did not confirm the reversal. On the contrary, the index gained momentum on Monday and has surpassed the high thus negating the reversal.

Reversal pattern formed in overbought zone, 17160 make or break level

This indicates a continuation of the short term momentum and hence, our markets still seem to have more room on the upside. Although, the momentum readings still remain in the overbought zone so the up move could now get concentrated to fewer sectors and stocks. On the higher side, the trendline resistance will be the immediate zone to watch out on the higher side which is around 17700-17750 while the support base has now shifted higher to 17350-17300 range. So traders with long positions can now trail their stoploss higher to 17300 while profit booking is advisable at higher levels. 
 

Nifty & Bank Nifty Levels: