Nifty Today Outlook Report - 18th May, 2022
Last Updated: 15th December 2022 - 11:07 am
Nifty started the day on a positive note above 15900 mark. After some consolidation in first half an hour, the index surged higher and as it surpassed the 16000 mark, there was no looking back then. Nifty then crept higher throughout the day and witnessed one of the sharpest rally of recent times as it ended tad below 16300 with gains of over 400 points.
Since last three trading sessions, Nifty was consolidating in a range around the March low supports. The index needed to surpass the narrow range formed in last three sessions for next directional move and as the index gave a breakout above 16000, we saw a sharp rally from thereon. As the hurdle was surpassed, we witnessed short covering in the derivatives segment and all the sectors participated in the up move which added fuel to the rally. Now, a big question looking at today’s move is whether the markets have bottomed and started a new rally or is it just a pullback.
Nifty Today:
In our sense, the index was trading around the previous low supports and the momentum readings were quite oversold, so the relief rally was much required which was seen today. For a change in trend, market has to confirm with a higher top higher bottom structure which is yet to be seen and till then, one should take this as a pullback move. The immediate resistance will be seen in the range of 16350-16400 where the 38.2% retracement of the recent correction coincides with the hourly 89 EMA. On the flipside, as the market rallied today, the call writers in the options segment went to cover their positions while additions were seen in 16000 puts. Thus, 16000 becomes an immediate support now for the short term.
Nifty Levels |
Bank Nifty Levels |
|
Support 1 |
16150 |
34000 |
Support 2 |
16000 |
33865 |
Resistance 1 |
16360 |
34550 |
Resistance 2 |
16460 |
34680 |
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