Nifty Today Outlook Report - 16th Jun, 2022

The indices consolidated in a narrow range ahead of the FED event and ended the day tad below 15700 with a marginal loss.

The market participants were awaiting for the decision of the outcome of FED policy as that could have an impact on the global markets. The U.S. Federal Reserve hiked interest rates by 75 basis points to tame inflation which was in expected lines of market participants. Now if we look technically, the market structure still remains weak as although the index has been trading near the swing low supports, we have not seen any buying interest.

Nifty Today:

If we look at derivatives data, then the long short ratio of FII’s is nearly 11 percent only which means about 89 percent of their positions are on the short side. As of now, we have not seen any signs of short covering from them and until the data changes, our market is unlikely to see any significant upside. On pullback moves, the recent gap area and the key retracement levels indicates resistance in the range of 15925-16100.

So any upmove towards the resistance should be just taken as pullback and traders should avoid aggressive longs still there’s change in the data or we see good volume based buying interest. On the flipside, 15650 will be seen as immediate support and if the Nifty breaches this level then we could see the index sliding towards 15450 in the near term.