Nifty Today Outlook Report - 08 July 2022

Nifty started trading for the day with a gap up above 16100 mark and consolidated within a broad range. The intraday dip towards 16050 witnessed buying interest and the index ended the day above 16100 with gains of almost a percent.

Nifty Today:

The index continued its upmove and surpassed the 16000 mark with a gap up opening. The Banking space continued its leadership and the broader markets too participated to lead the benchmark above 16100. Nifty has given a breakout from a falling trendline resistance in this upmove and a higher top higher bottom structure on the lower time frame charts. Thus, the short term trend remains positive till this structure continues. However, the index has now approached one important resistance at 16180 which is the 61.8% retracement of the previous correction from 16800 to 15180. A close above the same will be a confirmation of further pullback move towards 16255 at least. On the flipside, the support base is shifting higher and 16000-15950 will now be seen as immediate support followed by 15800.

The Bank Nifty index is continuing its outperformance which is likely to continue given the participation from the large cap space. Amongst the other sectoral indices, the Nifty Metal index has given a closing above its 20-day EMA and hence some positive action could be witnessed in this sector.