Nifty Today Outlook Report - 24th May, 2022

market outlook for 24-may-22

by Ruchit Jain Last Updated: 2022-05-24T11:59:55+05:30

Nifty started the day marginally positive and surpassed 16400 mark led by some heavyweights. However, it witnessed selling at higher levels and the index gave up the gains in the later part of the day to end tad above 16200 with a loss of about three-tenths of a percent.

nifty

 

In last two weeks, Nifty has traded within a broad range of 16400 – 15700 and as we witnessed market recovery from the support zone during last week; it faced selling pressure from the higher end of the range in Monday’s session. Clearly, we are witnessing volatility within a broad trading range and the market has approached the higher end of the range which coincides with the ’20-day EMA’ resistance. If the index fails to surpass this hurdle, then we could see the index correct again and continue to consolidate within a broad range.

Traders are advised to lighten up at the higher end and wait for a clear breakout before initiating fresh longs. With the recent pullback, the momentum readings have relieved the oversold set-ups. The intraday supports for the coming session are placed around 16130 and 16043 whereas resistances are seen around 16272 and 16358.

Nifty Today:

Amongst sectoral indices, the Nifty Metal index corrected sharply due to negative news flows in the metal stocks which led to resumption of its downtrend. The Bank Nifty managed to hold with gains for most part of the day, but this index too resisted around its ’20 DEMA’ and corrected in the later part of the day. Until both Nifty and Bank Nifty sustain above their respective resistances of this moving average, the trend has not turned positive yet and hence, one should avoid aggressive positions.

 

Nifty Levels

Bank Nifty Levels

Support 1

16130

33970

Support 2

16043

33690

Resistance 1

16272

34672

Resistance 2

16358

34885

 


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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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