Nifty Today Outlook Report - 20th May, 2022
Ruchit Jain
Last Updated: 12th December 2022 - 01:42 pm
The sell-off in the global bourses led to a huge gap down for our market as Nifty started the day around 15900 mark. Without any meaningful pullback, the index traded with a negative bias throughout the day and the Nifty ended around 15800 with a loss of over 400 points.
The U.S markets had seen a sharp sell-off which had a rub-off effect on other global markets. Our market started with a significant gap down and as the recent trend has been negative; such a huge gap in direction of the trend indicates a continuation of the downtrend. The recent pullback retraced 38.2 percent of the previous correction and also relieved the oversold momentum set-ups. So the index resumed its downtrend which was much expected as there was neither change in data nor change in the short term structure. We have been recently advocating a ‘Sell on Rise’ strategy on the markets and until there are any signs of reversal, one should continue with this approach for short term trading.
Nifty Today:
Today’s gap area will now be seen as a resistance zone and we should soon see the index breaching its recent sing low of 15735. Below this previous low, the next levels to watch out will be around 15555 followed by 15325. Traders are advised to continue to trade with a cautious approach and look for selling opportunities from a trading perspective.
The IT space faced a sharp-sell reacting to the negativity in the global IT stocks which led to a correction over 5 percent in the Nifty IT index. All other sectors too ended in the red wherein except FMCG, other indices corrected more than 2 percent. This broad market sell-off certainly indicates a strong grip by the bears which could continue in the near term.
|
Nifty Levels |
Bank Nifty Levels |
|
|
Support 1 |
15735 |
33118 |
|
Support 2 |
15555 |
32922 |
|
Resistance 1 |
15970 |
33572 |
|
Resistance 2 |
16060 |
33830 |
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