Nifty Outlook - 30 August 2022

Nifty Outlook - 30 August 2022
Nifty Outlook - 30 August 2022

Market Outlook
by Ruchit Jain Last Updated: 2022-12-09T15:55:39+05:30

The U.S. markets corrected sharply in Friday’s session following the Federal Reserve Chair Jerome Powell’s warning that the central bank will not end its fight against inflation anytime soon. In line with the same, our markets started the week with a huge gap down below 17200. The index however, recovered some of the losses during the day and ended above 17300 with a loss of almost one and a half percent.

 

Nifty Today:

Nifty breached the recent swing low support and the important support of ’20-day EMA’ with a gap down opening. This also confirms the ‘Lower Top Lower Bottom’ structure on the daily chart and as we anticipated last week, the market has resumed its corrective phase. The momentum readings on the daily as the hourly chart continue to indicate negative momentum. The immediate support for Nifty is now placed around 17100 which would be the important level to watch in the near term. On the flipside, 17450 and 17530 are likely to act as resistance on any pullback move. In Monday’ session, the broader markets witnessed positive traction after the gap down as the midcap index recovered well. The Midcap100 index is still above the support of 30100 which is the sacrosanct. 

 

Market corrects after hawkish Fed comments

 

Market corrects after hawkish Fed comments

 

Till the index trades above this, stock specific action could continue within this basket. However, once the index breaks the mentioned support then we could see price wise correction in midcaps as well. Traders are advised to look for stock specific trading opportunities for now with a sell on rise view on the index. Any pullback moves towards the above mentioned resistances in Nifty could be opportunities to look for selling opportunities.

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17165

38650

Support 2

17090

38770

Resistance 1

17450

37900

Resistance 2

17530

37670

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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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