Nifty Outlook - 16 September 2022

Nifty Outlook - 16 September 2022
Nifty Outlook - 16 September 2022

Market Outlook
by Ruchit Jain Last Updated: 2022-09-16T11:27:53+05:30

Post the sharp recovery from the lows in Wednesday’s session, Nifty started the weekly expiry day above the 18000 mark. However, the index witnessed some selling pressure and it gradually declined throughout the day to end below 17900 with a loss of seven-tenths of a percent.

 

Nifty Today:

 

The index recovered smartly from the lows on Wednesday but there was no follow up buying seen in Thursday’s session. If we look at the daily chart, the Nifty seems to be trading within a ‘Rising Wedge’ pattern on the daily chart. The support end of the pattern is placed around 17770 and the ‘20 DEMA’ support is around 17700. So these are the important support levels and if these get breached, then the implication of the breakdown from the above mentioned pattern will be bearish. However, till the index trades above the mentioned support, there’s nothing much to worry about. The momentum readings on the daily charts are still positive but have given a negative crossover on the hourly chart. Thus, we would keep a close watch to see if the readings on the hourly chart give positive crossover first, which would open up more room on the upside. However, if the index breaches the above supports and the daily readings too give a negative crossover then would be time to turn cautious. On the flipside, the immediate resistance for the Nifty is seen around 18100 followed by 18200-18250 range.

 

17700 seen as make or break level for Nifty

 

17700 seen as make or break level for Nifty

 

The rising Dollar Index is usually negative for the equities but a relative outperformance by our INR compared to other global currencies have resulted in an outperformance in our equity markets too. Short term traders should keep a close watch on the currency as well as any directional move in the currency could give us an early indication of the short term directional move. 

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17770

40800

Support 2

17700

40500

Resistance 1

18040

41625

Resistance 2

18100

41950

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About the Author

Ruchit Jain is Lead Research Analyst at 5paisa. He has a vast experience of 14 years in this field and is proficient in Technical and Derivatives Research. He has completed his CMT (U.S.A.) and has done Masters in the field of Finance at Mumbai University.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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