Nifty Today Outlook Report - 10th Jun, 2022

Nifty started the day on a negative note around 16250, but it recovered gradually from the lows and traded with a positive bias throughout the day to end below 16500 with gains of over 100 points.

We had a negative start for the day but the index recovered from the lows as the momentum readings on the lower time frame charts were in oversold territory post the recent correction from 16793-16243. Such oversold set-ups usually lead to a pullback move which we saw in yesterday’s session. Now this pullback would retrace this recent correction of 550 points from the swing high and it would be crucial to see if the index makes a lower high on the daily chart.

Nifty Today:

The resistances in this pullback would be seen around 16600 and hence, traders should look to lighten up longs in the up move. Overall, we can see ‘Triangle’ developing on the Nifty charts which is a sign of consolidation and only on a breakout from this consolidation; we would see the next directional move in the market. The extreme ends of this pattern are around 16700 and 16100. Till the index trades within this broad range, one should focus on stock specific approach and look to book profits and lighten up as the index approaches the resistance zones. The intraday supports for the coming session are placed around 16405 and 16320 while resistances are seen around 16570 and 16655.