Nifty Outlook - 25 August 2022

Nifty Outlook - 25 August 2022
Nifty Outlook - 25 August 2022

Stock Recommendations
by Ruchit Jain Last Updated: 2022-08-25T10:29:29+05:30

Nifty traded within a narrow range in yesterday’s trading session and ended above 17600 with marginal gains. The BankNifty index relatively outperformed and reclaimed the 39000 mark at close.

 

Nifty Today:

 

After testing low around the 20-day EMA on Tuesday, the Nifty has seen some recovery and has pulled back to surpass 17600 again. In last couple of days, the stock specific momentum has been positive as the market breadth was in favor of advances and the BankNifty index has seen decent buying interest. 

 

Nifty consolidated in a range while Banking stocks outperform

 

Nifty consolidated in a range while Banking stocks outperform

 

However, it seems the market has again entered the corrective phase from the high of 18000 and after the first corrective move, it is retracing that move. The Nifty index has retraced more than 38.2 percent of this down move and if the up move continues on the expiry day, then it could attempt to move towards its next retracement resistances which are seen around 16760 and 17745. On the other hand, the Bank Nifty index has already retraced by 61.8 percent and has ended around the resistance. The 78.6 percent retracement resistance is placed around 39370. We advise traders to look to lighten up long positions in this pullback move and avoid aggressive trades. The immediate supports for Nifty on the lower time frame charts are placed around 17500 and 17410 and breach of these supports will give us confirmation of next corrective move.

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17500

39690

Support 2

17410

38330

Resistance 1

17670

39250

Resistance 2

17745

39470

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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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