Nifty Outlook Report - 21st April, 2022

Ruchit Jain Ruchit Jain

Last Updated: 10th December 2022 - 01:57 pm

Listen icon

The positive global market set ups led to a gap opening for the Nifty above the 17000 mark. The index managed to trade with a positive bias throughout the day and ended above 17100 with gains of over a percent.

nifty

 

Our markets corrected sharply in the last half an hour on Tuesday and completed its 50% retracement of the previous upmove. This level around 16850 also coincided with the ‘200 DEMA’ on the daily chart. The global markets were positive today morning which led to a positive start for the Nifty.

Share Market Update

The index managed to trade with positivity led by the heavyweight Reliance Ind. and due to some recovery in the beaten down counters such as Infy and HDFC. However, the banking space relatively underperformed throughout the day and the banking index ended marginally negative.

Now, if we look at Nifty, the index has formed an ‘Inside Bar’ today at the support zone. Such a pattern signals some consolidation, but many times they set up indications for trend reversals in technical analysis.

Since this pattern is formed at the support, the follow up move will be very important now and a move above Tuesday’s high of 17275 will lead to a confirmation of the resumption of the uptrend in Nifty. On the flipside, this support of 16800-16850 will be crucial as if this is breached, then the index will continue the correction towards the next support of 16600.

At this juncture, we advice traders to look for follow up move and trade aggressively only on a breakout beyond 16800-17275 range. Till then, focusing on stock specific approach could be a better strategy for trading.
 

 

Nifty Levels

Bank Nifty Levels

Support 1

17000

36115

Support 2

16900

35915

Resistance 1

17220

36510

Resistance 2

17275

36700

 

 

How do you rate this article?
Characters remaining (1500)

FREE Trading & Demat Account
+91
''
Resend OTP
''
''
Please Enter OTP
''
By proceeding, you agree T&C*
Mobile No. belongs to

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

Want to Use 5paisa
Trading App?