Nifty Today Outlook Report - 03 August 2022

Stock Market Outlook Report - 03-August-22
Stock Market Outlook Report - 03-August-22

Stock Recommendations
by Ruchit Jain Last Updated: 2022-08-03T12:29:17+05:30

The Asian markets were trading with a negative bias and hence our markets too corrected post opening in the first hour of the day. However, from the low of 17215 the index recovered and rallied to almost test 16400 mark. But it was not done yet, it gave up the gains too in the last half an hour and Nifty ended tad below 16350 around the previous day’s close.

 

Nifty Today:

 

It was a volatile trading session for Nifty but it managed to end the day on a flat note. However, the stock specific momentum was good and markets breadth was positive which provided good trading opportunities for day traders. If we look at the lower time frame charts of Nifty, the momentum set ups are showing a negative divergence as although the index surpassed the previous day's high, the oscillator has not thus formed a divergence. Also Nifty is trading around the crucial hurdle of 61.8% retracement of the entire corrective phase of last few months. Usually when such divergences in overbought zone coincide around crucial resistance, it should lead to either a time-wise or a price-wise correction in the index in the short term. Hence, traders should look to book profits on long positions and look for some correction in the next few days. 

 

Divergences seen at resistance zone, better to start booking profits

 

Divergences seen at resistance zone, better to start booking profits

 

The immediate support for Nifty is placed around 17200 below which the index could test 17000 level. On the flipside, 17350-17400 is the immediate resistance zone.
 

 

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

17200

37735

Support 2

17000

36500

Resistance 1

17400

38200

Resistance 2

17500

38400

Start Investing in 5 mins*

Get Benefits worth 2100* | Rs. 20 Flat Per Order | 0% Brokerage

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.

Open Free Demat Account

& get benefits worth 2100*

Resend OTP
Please Enter OTP
  • Have Promo code?
  • Use code ACT2100
Enter Promo code
Account belongs to

By proceeding, you agree to the T&C.

Start Investing Now!

Open Free Demat Account in 5 mins

Enter Valid Mobile Number