Nifty Today Outlook Report - 17th May, 2022

Nifty started the day marginally positive and consolidated within a broad range throughout the day. The index was neither able to break below previous day’s low nor it had enough strength to surpass the previous session’s high, and it ultimately ended near the opening levels with marginal gains of four-tenths of a percent.

Nifty ended today’s session with a ‘Doji’ candlestick on the daily chart. This pattern indicates indecision, but given that the index was not able to surpass its hurdles inspite of positive market breadth is not a good sign. However, if we look at last three trading sessions, the index has consolidated within a range wherein 15735 have acted as a support. The previous swing low of March 2022 is also around 15670 and thus, 15670-15735 is the important support zone now for the index.

Nifty Today:

On the flipside, the recent downtrend has been so strong that inspite of oversold set ups, we have not seen any strength to pull the indices higher. Only if the index closes above 16000 mark, then we could expect a price-wise pullback in the short term. Until then, traders should continue to stay cautious and avoid any aggressive contra bets. Above 16000, immediate levels to watch would be around 16125 and 16210 while a breach of the above mentioned support could lead to a sell-off towards 15450.