Nifty Today Outlook Report - 13th Jun, 2022

The week started with a gap up opening above 16750 mark. However, the index witnessed selling pressure post that gap up and it corrected throughout the week with some in between pullbacks. The index recovered from the lows on the weekly expiry session, but again the global markets spoiled the sentiment and Nifty started with a gap down on Friday and ended the week at 16200.

Post the recent pullback move, Nifty resumed the down move in this week as the stronger hands (FII’s) had formed short positions in the index futures segment. Post some consolidation around their retracement resistance, the US markets too resumed their corrective phase which led to a negative momentum in our markets towards the end of the week.

The ‘RSI Smoothed’ oscillator on the daily chart also has given a negative crossover and has ended in a sell mode. However, the index has already corrected from 16800 to 16200 in a week due to which the readings on the lower time frame charts are in the oversold zone. Also, the immediate support for the Nifty is placed in the range of 16200-16000.

Nifty Today:

Thus, a pullback move cannot be ruled out to relive the oversold set ups on the hourly charts. But any pullback moves would again witness selling pressure at higher levels, and hence traders should keep a ‘Sell on Rise’ strategy. The immediate resistance on pullback move will be seen in the range of 16400-16500.

The global markets seem to have resumed their downtrend and the U.S. Dollar index has been moving higher post the recent corrective phase. Both these factors along with rising Crude Oil Prices will not be in favor of our market and hence, our indices too could again see a sell-off in the near term.

Now, whether it would be a sharp sell-off like the one we saw in May or a gradual down move with in between pullbacks will be difficult to assess for now. But traders should trade in the primary direction of the market which remains down and hence, we are advising a ‘Sell on Rise’ approach. Below 16000, the index can again re-test the recent swing lows of around 15700 and even break them.