Nifty Today Outlook Report - 13 July 2022

The weak global markets led to a negative opening for Nifty and the index consolidated in a range in the initial couple of hours. However, the index corrected further in the later part of the day and Nifty ended the day tad above 16050 with a loss of almost a percent.

Nifty Today:

Post hitting the resistance of 16250, the index has retraced some of the recent gains and Nifty is now approaching the 16000 mark. The correction in the global markets, rise in the U.S. Dollar Index and selling by FII’s has been the reasons for the nervousness in equity markets. However, the index has been forming a ‘Higher Top Higher Bottom’ structure on the lower time frame charts and until this structure changes, this should just be read as a pullback move. 

                                   Global factors leads to nervousness in equity markets

The rising trendline drawn by joining the recent lows is indicating support around 15800 and it remains the sacrosanct level for the trend to change. The immediate support is placed in the range of 16000-15950 and short term traders can look for buying interest in this support range. The overall market breadth remains positive and is not the way we had recently seen during the downtrend. Hence, taking a stock specific approach could be a better way to trade for the next few trading sessions.