Nifty Today Outlook Report - 13th May, 2022

Nifty started the weekly expiry session with a gap down around 16000 mark. Without any pullback, the index continued its correction and it crept lower throughout the day to end around 15800 with a loss of over a couple of percent.

The short term trend remains negative and such sharp corrections are usually a normal course in a down trend. Since last few days, we have not seen any pullback or respite for the bulls which clearly signals a strong trended phase. The index has been resisting around the ’20 EMA on the hourly charts’ in recent pullbacks and this average has now declined to 16040. Thus, for any up move Nifty needs to cross this hurdle first and until then, one should avoid any aggressive buy trades.

Nifty Today:
 

The ‘RSI Smoothened’ oscillator has now entered the oversold zone, but in a downtrend markets usually have tendency to continue its correction in the oversold phase as well. So when will there be a pullback that needs to be confirmed by some price action itself. The Banking index which showed relative outperformance in last three sessions, finally resumed its downtrend which was much expected as there was no change in the trend. In case there’s any up move due to oversold readings, one should just consider it as a pullback move. The intraday supports for Nifty for the coming session are placed around 15681 and 15555 and resistances are seen around 15925 and 16040.