Nifty Today Outlook Report - 05 August 2022

Ruchit Jain Ruchit Jain

Last Updated: 10th December 2022 - 12:40 am

Listen icon

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
 

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

How do you rate this article?
Characters remaining (1500)

FREE Trading & Demat Account
+91
''
By proceeding, you agree T&C*
Mobile No. belongs to
hero_form

Market Outlook Related Articles

Market Outlook for 16 July 2024

by Ruchit Jain 13th Sep 2024

Market Outlook for 15 July 2024

by Ruchit Jain 15th Jul 2024

Market Outlook for 12 July 2024

by Ruchit Jain 12th Jul 2024

Market Outlook for 11 July 2024

by Sachin Gupta 11th Jul 2024

Market Outlook for 10 July 2024

by Sachin Gupta 10th Jul 2024

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

Want to Use 5paisa
Trading App?