Nifty Today Outlook Report - 06th May, 2022

The positive close on the U.S. bourses had an impact on our markets at open. The indices traded with a positive bias around 16900 mark till noon, however it gave up all the gains in the later part of the day and ended on a flat note below 16700.
 

Post a sharp sell-off yesterday, all eyes were on the FED meeting outcome and its impact on the equity markets. The global markets reacted positively and hence, our markets started with a gap up above 16800. After some positivity in the first half of the day, we witnessed sell-off in the later half wherein the index gave up all the gains. On Wednesday, Nifty witnessed selling pressure from its ‘20 EMA’ on the hourly chart and on weekly expiry session too, this hourly average acted as a resistance.

Nifty Today:
 

This average is now placed around 16870 which would be crucial hurdle on intraday charts. Also, on the daily chart Thursday’s morning up move just seem to be a pullback after breakdown from a ‘Bearish Flag’ pattern. Hence, the short term trend continues to remain negative and in such a trend, the pullback moves are likely to witness selling pressure. Hence, we continue with our advice for traders to stay cautious and avoid aggressive positions until we see a reversal of the trend. The intraday supports for Nifty in the coming session are placed around 16574 and 16465 whereas resistances are seen around 16760 and 16870.