Nifty Today Outlook Report - 22 Jun 2022

Post consolidating in a range for a couple of sessions, Nifty started Tuesday’s session with a gap up above 15450. The gap up led to a positive momentum in the index and one after other all the sectors started participating during the day. The index rallied sharply and surpassed 15700 mark before ending the session tad below 15650 with gains of almost 300 points.
 

In last couple of sessions, Nifty had traded within a range of 15400-15180 and had formed back to back doji candles. So a range breakout was needed for momentum and the index broke above the same with a gap up. This led to a good buying interest in the indices as the heavyweights witnessed a positive momentum. 

 

Nifty Today:

The momentum set ups too were oversold and hence, such pullback was on the cards given the recent sell-off from 16800-15200. Now, this up move doesn’t seem to be the start of any fresh uptrend but given that pullbacks during downtrend are usually sharp, this could retrace the recent corrective structure. The index has tested its first resistance of 15650-15700 range which was the previous support range. 

Above this, the retracement levels to watch out will be the 38.2 and 50 percent retracement which are around 15800 and 15990 respectively. On the flipside, 15400-15380 will be seen as the immediate support now and if the index has to retrace upto the above mentioned retracements, then it should not go much below the above support zone immediately. Traders are advised to trade with a stock specific approach and keep a tab on the above given levels.