Nifty Outlook - 24 August 2022

Nifty Outlook - 24 August 2022
Nifty Outlook - 24 August 2022

by 5paisa Research Team Last Updated: Dec 13, 2022 - 10:54 am 18.8k Views
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Nifty started Tuesday’s session with a gap down opening as the global markets were trading on a weaker note. However, the index recovered the losses post opening and it then witnessed buying interest on intraday dip. The market rallied for the rest of the session and ended tad below 17600 with gains of half a percent.

Nifty Today:

 

Nifty had corrected from the high of 18000 to 17350 in just couple of trading sessions. The Nifty opened gap down around the 20-day EMA support which was the immediate support for the market. Also, due to the sharp correction in last couple of sessions the momentum readings on the hourly chart were in oversold zone. So this combination of oversold markets and the daily support led to a pullback move and the indices rallied post the gap down. However, as the market has corrected and has taken support around its 20 EMA, the question now arises whether this was just a pullback and Nifty has resumed its upmove. In our sense, the global scenario does not point to another sharp rally in the near term. The Dollar index has resumed its uptrend and has surpassed the 109 mark which is negative for the equities.

 

Market witnessed pullback move from its support

 

Market witnessed pullback move from its support

 

 FII’s have trimmed their long positions in last few sessions and have formed some short positions as well. The global markets seem to have completed their pullback moves and have again witnessed sell-off from their resistance zones. So until these global factors change, we may not see a significant up move from here in the indices. The 20-day EMA around 17350 will be seen as immediate support and a breach of the same will intensify the downward momentum. On the flipside, the pullback move could retrace the recent correction from 18000 to 17350 and retracement resistance for Nifty will be seen around 17670 and 17745.

So traders are advised to lighten up longs in this pullback move around the mentioned resistances. 
Amongst sectoral indices, Bank Nifty witnessed sharp surge and relatively outperformed the benchmark. Although it's relatively better placed than Nifty, the structure still remains the same and it could see deeper pullback moves. The retracement resistance in Bank Nifty will be seen around 38900 and 39100. 

 

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17410

38180

Support 2

17350

37950

Resistance 1

17670

38900

Resistance 2

17745

39100

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