Nifty Today Outlook Report - 14th Jun, 2022

The weak global markets led to a hint of a significant gap down opening and hence Nifty started the day at 15900 with a gap of over 300 points. It corrected further post opening and breached the 15700 mark before ending tad below 15800 with a loss of over 400 points.

The gap down opening led to a continuation of the down trend and Nifty re-tested the recent swing low of 15700. Our markets have been following the global cues and have been acting accordingly as we are witnessing sharp cuts in indices across the globe.

The rising U.S. Dollar index along with the bearish positions formed by the FII’s in the index futures segment had turned the trend down again last week post the pullback move up to 16800. As of now, there’s no respite seen as the data continues to be negative for equity markets and technically also, the oscillator was back into ‘Sell mode’ on Friday last week.

Nifty Today:

Hence, until we see any positive or contra signs, the trend remains down and hence, traders should look to trade in the direction of the trend. In mid-May, Nifty took support around 15750 which was around the swing lows of the month of March of 15675. Now the index is back around that support but looking at the broader market scenario, it seems that the index will breach this support this time and will head lower to continue the ongoing downtrend.

The momentum reading on the hourly charts is in oversold but not on the daily chart which is in ‘Sell’ mode. Hence, a pullback move could not be ruled out to relive the oversold set ups of the lower time frame charts. But any such pullback will be just a counter trend move and traders should look for selling opportunities in the same.

Nifty could look to test 15460 in the near term and if there’s no respite there, then 15250/15100 would be the next levels to watch. On the flipside, 16000-16100 is the immediate resistance now.