Market Outlook for 16 July 2024
Nifty Today Outlook Report - 05 August 2022
Last Updated: 10th December 2022 - 12:40 am
Nifty started the day on a positive note and almost tested 17500 mark. But the index witnessed sudden fall during mid-session and it even breached 17200 support within no time. However, it was just a flash correction as the index gradually recovered all the intraday losses and ended tad below 17400 on a flat note.
Nifty Today:
It was indeed a volatile weekly expiry day as the market fluctuated significantly on both sides and finally ended on a flat note. The correction was on the cards as the momentum setups on the hourly chart were overbought and had shown negative divergences. The recovery in the later half has resulted in the formation of a ‘Hanging Man’ candlestick pattern on the daily chart of Nifty. It is a candlestick pattern which represents a potential reversal of the uptrend. Since this pattern hints at a trend reversal, the signal should be confirmed by a price drop the next day and hence, Friday’s price action post the RBI Policy will be of utmost importance as that will lead to the short term directional move for the market. Since the momentum readings on the daily chart are in an overbought zone, traders should look to lighten up long positions.
Reversal pattern formed in overbought zone, 17160 make or break level
A break of low of 17160 will then confirm the change of trend. Also in last couple of sessions, the up move has been concentrated to fewer stocks and sectors which is a sign of divergence. So traders should be very specific in stock picking at current levels and trade with proper risk management. The immediate supports for Nifty are placed around 17160 and 17000 while resistances are seen around 17500 and 17600.
Nifty & Bank Nifty Levels:
|
Nifty Levels |
Bank Nifty Levels |
Support 1 |
17160 |
37260 |
Support 2 |
17000 |
36760 |
Resistance 1 |
17500 |
38240 |
Resistance 2 |
17600 |
38730 |
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