Nifty Today Outlook Report - 11 August 2022

It was a day of consolidation for our markets as the index traded within a narrow range and ended the day on a flat note.

Nifty Today:

Nifty in overbought zone but still holding its important supports

The index continues to trade in the overbought zone but there’s no sign of reversal yet as the index is holding above its important supports. However, the market breadth has started diverging as the number of stocks advancing has been gradually decreasing. On the other hand, the hourly charts of Nifty indicate the probability of formation of a rising wedge pattern which is usually formed in the end stages of an uptrend.

Although the index may not correct immediately, the above technical setups hints that traders should look to start booking profits on positional longs and take some money off the table. In the near term, the support base for Nifty has now shifted to 17400-17350 range and on the higher side, immediate resistance is seen around 17640. So traders should trade with a stock specific approach for time-being and avoid aggressive positions. 

Nifty & Bank Nifty Levels: