Nifty Today Outlook Report - 29 July 2022

Stock Market Outlook Report - 29-July-22
Stock Market Outlook Report - 29-July-22

Market Outlook
by Ruchit Jain Last Updated: 2022-07-29T10:52:24+05:30

The global markets reacted positively to the U.S. Fed policy outcome which led to a gap up opening for our markets too. Nifty started with a gap up around 16800 and continued its momentum throughout the day to end well above 16900 with gains of almost 300 points.

Nifty Today:

At the start of this week, the index corrected marginally to relieve the overbought momentum setups. Post some retracement, the index resumed the positivity ahead of the event itself in anticipation and the global markets provided impetus for resumption of the upmove. 

Stock Market Outlook 29-July-2022

So the ‘Higher Top Higher Bottom’ structure continues and Nifty is marginally short of the 17000 mark. If we look at the daily chart, the index is retracing the previous corrective moves and is trading around important juncture. The 50 percent retracement of the entire correction from the top i.e. 18540 to 15180 is achieved at 15900 and the 61.8 percent retracement of the previous corrective leg from 18115 to 15181 is placed around 17000. So 16900-17000 is an important zone where the index is trading now and if it manages to surpass the same, then it could target to move towards the 61.8 percent retracement of the correction from the top which is seen around 17300. Today’s gap area of 16746-16653 will now be seen as the important short term support. The momentum setups on the lower time frame chart have again reached the overbought zone, but we seen recently that sometimes index stretches its upmove when in strong momentum for sometime inspite of being overbought. Hence, one should not pre-empt any reversal as of now and rather trade with the trend until any reversal signs seen.

 

The Midcap and the Smallcap index did not see significant upmove inspite of good gains on the benchmark. Since the market has already seen a rally in this month and is approaching resistances mentioned above, the upmove from hereon could get concentrated to fewer sectors or stocks and hence, traders need to be very selective in stock picking.

Nifty & Bank Nifty Levels:

 

Nifty Levels

Bank Nifty Levels

Support 1

16800

37130

Support 2

16670

36890

Resistance 1

17000

37520

Resistance 2

17080

37660

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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.

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