Nifty Today Outlook Report - 23rd May, 2022
Ruchit Jain
Last Updated: 10th December 2022 - 09:50 am
The Nifty started this week around the 15800 mark and the Nifty surpassed the 16000 mark, we saw a sharp up move in the index towards 16400 in just a couple of sessions. The sharp sell-off in the global markets then led to a huge gap down on the weekly expiry day and the market resumed its downmove to end around 15800 again. However, it was not done with it yet, surprisingly the index again rallied sharply in the last trading session and it ended this volatile week above 16250 with weekly gains of over 3 percent.
It was one of the most difficult week for traders as markets have oscillated sharply on both sides. The alternate bouts of buying and selling perplexed market participants as to the primary trend of the index. In our view, the recent activity in the Nifty where it has taken support several times as it approached 15700-15800 and has faced resistance around 16400 has changed the trend from down to sideways.
Nifty Today:
The index has formed a broad range of 15700-16400 where we can see multiple supports and ’20 DEMA’ hurdle on the higher end i.e. around 16400. Since the short term trend has now changed to sideways, the next directional move will now depend on a breakout beyond the mentioned range and hence, traders should look for either side breakout in the coming week. A move above 16400 could then lead to a decent up move towards 16800 while a break below 15700 would resume the downtrend.
On the bank Nifty index, the ’20 DEMA’ resistance is placed around 34740 and a move above that is required to see a deeper pullback in the short term. Looking at this week’s movement, we advise traders to wait for a clear breakout from the above mentioned range and then trade in the direction of the breakout.
|
Nifty Levels |
Bank Nifty Levels |
|
|
Support 1 |
15950 |
33630 |
|
Support 2 |
15700 |
33000 |
|
Resistance 1 |
16400 |
34740 |
|
Resistance 2 |
16600 |
35500 |
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