Market Outlook for 06th December 2024
Nifty Today Outlook Report - 04 August 2022
Last Updated: 15th December 2022 - 09:30 am
Nifty started the day on a flat note and witnessed some correction in the first half of the day. The index reached near the previous day's low and recovered in the later part to end the day above 17400 with gains of about one-third of a percent.
Nifty Today:
In yesterday’s upmove, the indices witnessed a negative divergence where the momentum oscillator was in an overbought zone and did not confirm a new high along with the price. Such a setup leads to either a price wise correction or a time wise correction and the correction in the first half relieved the overbought set ups. However, the index managed to hold above its support of 17225 and recovered in the later part of the day to resume the momentum. This indicates a strong trended move and the reversal of the trend is not confirmed yet by the prices. It requires a break of immediate short term support which is now around 17225 and if this level gets broken, then the market could enter a price wise corrective phase. However, until there’s confirmation, traders are advised not to preempt reversal. On the other hand, the rally is getting concentrated to fewer stocks now as we can see that the overall market breadth was weak and it was only the Nifty IT sector which managed to hold the benchmark higher. This usually happens in the last leg of a rally where the broader markets start diverging and only some heavyweights keep the momentum in the index intact. So traders need to be very specific in stock selection for trading and infact look to lighten up longs in the up move from hereon.
Rally getting concentrated to fewer stocks, 17200 important level
The immediate support for Nifty is placed around 17225-17200 below which it could then retrace the recent rally and correct towards 17000. On the flipside, 17465-17525 are the resistances to watch for.
Nifty & Bank Nifty Levels:
|
Nifty Levels |
Bank Nifty Levels |
Support 1 |
17200 |
37780 |
Support 2 |
17000 |
36550 |
Resistance 1 |
17465 |
38160 |
Resistance 2 |
17525 |
38300 |
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