Nifty Today Outlook Report - 04th May, 2022
Ruchit Jain
Last Updated: 11th December 2022 - 08:21 am
The U.S. markets had a sharp sell-off on Friday evening and this led to a negative start for our markets today. However, post gap down opening, the indices were resilient to correct further and it consolidated within a range for most part of the day. The banking space showed some relative strength and recovered the losses which led to a recovery in Nifty as well and the index ended with a marginal loss of a quarter of a percent above 17050.
Recently, our markets have been reacting to the global markets direction at the open, but there’s no trended move seen as the index has largely consolidated within the range of 16800-17400. There’s formation of a bearish flag pattern on the daily chart of Nifty and the index is trading within the pattern with no breakout yet. We expect the index to unfold a directional move only on a breakout beyond the above mentioned range.
Nifty Today:
Till then, one should be very stock specific and avoid aggressive trades. Since the mentioned pattern is a bearish pattern and also there’s no broader market strength seen, the biasness remains negative. On pullback moves, the immediate resistances are around 17200 and 17400. Traders should look to lighten up longs on pullbacks towards the resistances and wait for a clear breakout before trading aggressively. On the flipside, the support range is at 16900-16800 and if this is breached, then we could see a sharp sell-off to drag the markets towards 16470.
|
Nifty Levels |
Bank Nifty Levels |
|
|
Support 1 |
17825 |
35500 |
|
Support 2 |
17600 |
35020 |
|
Resistance 1 |
17200 |
36500 |
|
Resistance 2 |
17400 |
36950 |
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