Nifty Outlook Report - 18th April, 2022

The truncated week witnessed some cool-off in the index as market participants looked to lighten up their positions ahead of the long weekend. The index ended below 17500 mark with a weekly loss of 1.74 percent.

The truncated week witnessed some cool-off in the index as market participants looked to lighten up their positions ahead of the long weekend. The index ended below 17500 mark with a weekly loss of 1.74 percent.

The Nifty index has corrected from its swing high of 18115 to end the week tad below 17500 mark. It has now ended around its’20 DEMA’ support which is placed around 17450. During this corrective phase, the midcap space initially showed relative outperformance as the broader markets continued to witness good buying interest, however, the Nifty Midcap index witnessed some profit booking in last couple of sessions ahead of the long weekend.

In this recent upmove, the 20 DEMA has acted as a good support and the market has closed just around this pivot point. Next week’s opening would be depended on the global market movement in next couple of days and if the index manages to start the week on a positive note, then the 20 EMA could then become a strong support for the short term.

From a broader perspective, the index may see a time wise correction in the second half of the April series with more opportunities in sector/stock specific momentum. The immediate support for Nifty are placed around 17370 and 17275 while resistances are seen around 17755 and 17850. 

For the coming week, traders should focus on stock specific trades where better opportunities could be seen and since our market would resume trading after a long weekend, Monday’s move could set the momentum for the short term.
 

Nifty Levels

Bank Nifty Levels