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Nifty Outlook - 18 August 2022
Last Updated: 7th September 2023 - 05:09 pm
Nifty again started the day on a positive note and continued its up move with broader market participation. The index is approaching the 18000 mark and is tad away from the same as it ended the session around 17950 with gains of two-thirds of a percent.
Nifty Today:
The Sensex reclaimed the 60000 mark and Nifty too is approaching the milestone of 18000 again. The index continues to move higher in the overbought zone with no signs of reversal yet. It is generally seen in strong trending phases that markets continue such extended up moves. The momentum readings are highly overbought, so profit booking shall not be ruled out in the near future. But in such a phase, traders should not pre-empt any reversals and take contra trades but rather continue to trade in the direction of the trend with small position sizes. The supports for Nifty have now shifted higher to 17830 and 17700 while resistances are seen around 18100 and 18180.
Sensex reclaims 60000; Nifty approaching the crucial 18000 mark
Trading with a stock specific approach could be a better strategy for the near now as the risk reward in index trades is not favorable now. One should look for sectors that are witnessing buying interest in the initial couple of hours of the session and look to stocks that are taking leadership within the sector.
Similar to Nifty, the Bank Nifty index too is continuing the up move and the supports there have now shifted to 39200 and 39000. The IT index too witnessed buying interest and some the defensive names could now see relative outperformance.
Nifty & Bank Nifty Levels:
|
Nifty Levels |
Bank Nifty Levels |
Support 1 |
17830 |
39200 |
Support 2 |
17700 |
39000 |
Resistance 1 |
18100 |
39650 |
Resistance 2 |
18180 |
40000 |
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