Nifty Today Outlook Report - 20 July 2022

The Nifty started trading on a negative note as the global markets witnessed some volatility and had indicated mixed signals. However, the broader markets continued to witness buying interest and hence, the index too recovered the losses and ended the day tad below 16350 with marginal gains.

Nifty Today:

The index continues its short term uptrend as the Nifty continues its ‘Higher Top Higher Bottom’ structure on lower time frame charts. The Banking space took the leadership and it continued its relative outperformance to end above its 200-day EMA.

                                         Banking leads to keep the market momentum intact 

The momentum setups remain in buy mode on the daily chart, but it has reached the overbought zone on the hourly chart. So in case if we see any negative crossover from the overbought zone on the hourly chart, then we could see in between declines in the index to relieve the overbought set ups. However, the broader markets have been witnessing good buying interest as the midcap and the smallcap index is slowly moving higher to retrace the recent corrective phase. Hence, traders should look for stock specific buying opportunities and trade with a positive bias. Incase of any declines, the immediate support for Nifty will be seen around the hourly 20-EMA around 16220 . On the flipside, the near term upside for Nifty is seen around 16520 & 16650 where we could see confluence of resistances.