Nifty Today Outlook Report - 22 July 2022

Ruchit Jain Ruchit Jain Ruchit Jain 10th December 2022 - 07:31 am
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Nifty started the day on a flat note but it traded with a positive bias for most part of the session. The intraday decline towards 16500 witnessed buying interest and the index ended above 16600 with gains of half a percent.

 

Nifty Today:

 

Nifty has continued its positive momentum and has regained the 16600 level. The broader markets witnessed buying interest and hence the market breadth was much positive. With the index moving higher, the support base is gradually shifting higher. However, the momentum readings on the lower time frame chart have reached its overbought zone and on the daily chart, the 50 percent retracement resistance is seen around 16650. Now the index is near the resistance and the momentum readings are overbought, but the market breadth is positive and stocks are witnessing buying interest.

Generally in such conditions, the market either witnesses a small price-wise correction on the index and then it resumes its momentum, or it trades sideways for a few trading sessions which we call as a time-wise correction and in process the overbought readings cool down. It would be crucial to see how prices behave in the next couple of sessions. 

 

Nifty in overbought zone, but stock specific buying interest seen

 

Traders should now avoid aggressive positions here and look to book profits on the long positions. Trading with a stock specific approach and a proper risk management should ideally be the trading strategy in such scenarios. The immediate support for Nifty has now shifted higher to 16480 and if this is broken, then the index could witness a price wise correction. On the flipside, the resistance for the index is seen around 16650 which is the important retracement level and above that next level to watch will be the early June high of 16790.

 

 

Nifty Levels

Bank Nifty Levels

Support 1

16520

35950

Support 2

16480

35700

Resistance 1

16650

36400

Resistance 2

16790

36585

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