Nifty Today Outlook Report - 01st June, 2022

Nifty started yesterday’s session on a negative below 16600 and then recovered gradually to almost test 16700 mark. However, we witnessed a sudden sell-off in the last half an hour and ended near the opening levels with a loss of about half a percent.

The index oscillated in a range yesterday and has ended with formation of a ‘Doji’ candlestick pattern. It was a day of stock specific momentum wherein the small cap stocks witnessed some positive momentum. The index is approaching the ‘200 DEMA’ hurdle which is around 16750 and hence, we may see some bouts of profit booking.

Nifty Today:

The hourly momentum oscillator has given a negative crossover from the oversold zone. In the next few sessions, our markets could see some broad consolidation wherein stock specific momentum would provide better opportunities. The immediate support for the coming session will be seen in the recent gap area at 16500-16370 where also the ’20 DEMA’ is placed. On the flipside, 16750 is the immediate resistance level. Traders are advised to look for stock specific momentum and avoid aggressive overnight positions.