Nifty Outlook - 27 Sep-2022

Nifty Outlook - 27 September 2022
Nifty Outlook - 27 September 2022

by Ruchit Jain Last Updated: Dec 11, 2022 - 08:56 am 15.3k Views
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The markets continued its corrective phase with another gap down opening and the index breached the 17000 mark in the initial couple of hours. The Nifty attempted for a pullback move from lower levels, but the bears have a firm grip as the index witnessed selling pressure on pullbacks and it ended tad above 17000 with a loss of over 300 points.

 

Nifty Today:

 

Nifty witnessed another gap down opening and continued its corrective phase as the Dollar Index continued its up move and the INR depreciated further and surpassed 81.50. The rise in the Dollar Index since last week and a sharp depreciation in INR have been the prime reasons for the sharp fall in Nifty. FII’s have formed more short positions in the index futures segment and they have been selling in the cash segment too. Until we see any reversal in the above data, the equities will continue to witness selling pressure and this decline from the high of 18100 seems to be an impulsive decline which is not completed yet. So the short term trend continues to be negative and hence, we continue with our advice for traders to stay cautious from a short term perspective. The immediate supports for Nifty are placed around 16880 (200DEMA) and 16765 (161.8% retracement of the previous correction). The RSI oscillator on the daily chart continues to show a negative momentum but is approaching the oversold zone on the lower time frame charts. Hence, a pullback move from around these supports cannot be ruled out. However, it continues to be a ‘Sell on Rise’ market and thus traders should be cautious on pullback moves. The immediate resistances for Nifty are around 17200 and 17300.

 

Downtrend continues for equities as Rupee depreciates further

Nifty Outlook 27 September 2022

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

16880

38330

Support 2

16765

38042

Resistance 1

17200

39066

Resistance 2

17300

39516

 

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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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