Nifty Today Outlook Report - 17th May, 2022

market outlook for 17-may-22

by Ruchit Jain Last Updated: 2022-05-17T11:35:19+05:30

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

 

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.
 

 

Nifty Levels

Bank Nifty Levels

Support 1

15735

33105

Support 2

15670

32892

Resistance 1

16000

33000

Resistance 2

16125

32550

 


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About the Author

Ruchit Jain is Lead Research Analyst at 5paisa. He has a vast experience of 14 years in this field and is proficient in Technical and Derivatives Research. He has completed his CMT (U.S.A.) and has done Masters in the field of Finance at Mumbai University.

Disclaimer

Investment/Trading is subject to market risk, past performance doesn’t guarantee future performance. The risk of trading/investment loss in securities markets can be substantial. Also, the above report is compiled from data available on public platforms.

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