Nifty Outlook - 19 August 2022

Nifty Outlook - 19 August 2022
Nifty Outlook - 19 August 2022

Stock Recommendations
by Ruchit Jain Last Updated: 2022-08-18T18:01:47+05:30

The index traded within a range on the weekly expiry day, but we witnessed some intraday volatility within the range and the Nifty ended the session marginally positive.

 

Nifty Today:

The indices witnessed some profit booking from the higher levels in the first half of the day , however the intraday correction got restricted around the hourly ’20 EMA’ support and the index recovered from the lows in the later part of the day. 
 

 

Nifty holding its short term supports in intraday declines

 

Nifty holding its short term supports in intraday declines

 

So the important short term supports are held on intraday dips and until we see any close below the same, the near term trend still remains up. However, the ‘RSI Smoothed’ oscillator has given a negative divergence on the lower time frame chart in the overbought zone which the first sign of caution. In the near term, if the index continues this upmove and the readings do not post new highs, then this could then lead to some negative divergences. Traders should keep a watch on the same and wait for crucial supports to get breached for taking any contra trades. The immediate supports in Nifty are now placed around 17850 and 17770 and close below these would be signs of reversal. Until then, we continue with our advice for traders to trade with a stock specific approach with reduced position size. 

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17850

39375

Support 2

17770

39090

Resistance 1

18100

39870

Resistance 2

18180

40000

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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.

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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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