Nifty Outlook - 27 Oct-2022

Our markets rallied higher with a gap up opening on the Diwali Muhurat trading session and it surpassed 17800 in Tuesday’s session at open. However, Nifty witnessed some correction ahead of the mid-week holiday and ended the day tad above 17650 with a loss of about half a percent.

Nifty Today:

In last few trading sessions, Nifty has seen an upmove from 17000 to 17800. The RSI readings on the lower time frame charts have entered the overbought zone and have given a negative crossover which usually lead to a short term consolidation or correction. Although the near term momentum remains positive, the market breadth is even steven and the midcaps too have not been participating aggressively. Hence, a near term volatility could not be ruled out. The near term supports for Nifty are placed around 17550 and 17400 and till the index holds above these crucial levels, declines are likely to witness buying interest. On the flipside, 17800 will be seen as the immediate resistance above which, the index could approach 18000 and beyond levels. The global markets, especially U.S. markets have seen a pullback move from their support which does not seem to be complete yet. Thus, if the upmove in the global bourses continues, then it would have a positive impact on our equity markets too.

Market cools-off ahead of mid-week holiday, global cues to dictate short term trend

Until crucial supports are broken, traders can trade with a buy-on-dip approach and look for buying opportunities on dips towards mentioned supports.

Nifty & Bank Nifty Levels: