Nifty Today Outlook Report - 25th May, 2022

Ruchit Jain Ruchit Jain

Last Updated: 10th December 2022 - 07:32 am

Listen icon

Nifty started trading on a flat note on Tuesday. It then consolidated with a negative bias throughout the day and ended at 16130 with a loss of half a percent.

nifty

 

Nifty was unable to surpass its resistance of 16400 in yesterday’s session and hence, intraday pullbacks witnessed selling pressure and dragged the index lower. The BankNifty index showed a relative outperformance and traded in a positive territory for most part of the day; but the selling seen in the IT space maintained pressure on the benchmark. India VIX was up by 10% today which is a sign of cautiousness and hence, traders should keep a tab on the same. In the options segment, 16400 and 16500 call options witnessed addition of open interest indicating a stiff resistance zone for next couple of sessions.

Nifty Today:

On the flipside, 16000 put option too have decent open interest outstanding and thus 16000-16500 should be the broad trading range as per the options data. The resistance of 16400 also coincides with the ’20 DEMA’ which has acted as a resistance on pullbacks in the recent corrective phase and hence, until that is surpassed, traders should remain cautious and avoid aggressive positions. The intraday supports in Nifty for Wednesday are placed around 16050 and 15972 whereas resistances are seen around 16235 and 16340. 

The IT space continued its correction which validates our recent view on extension of the corrective phase in this sector. The Bank Nifty has shown relative strength in last couple of sessions but it has not yet surpassed its crucial hurdle. So in case the Nifty resumes its correction in the near term, then the banking space too will follow the path.

 

Nifty Levels

Bank Nifty Levels

Support 1

16050

34060

Support 2

15972

33850

Resistance 1

16235

34535

Resistance 2

16340

34800

 

How do you rate this article?
Characters remaining (1500)

FREE Trading & Demat Account
+91
''
By proceeding, you agree T&C*
Mobile No. belongs to
hero_form

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

Want to Use 5paisa
Trading App?