Nifty Today Outlook Report - 29 Jun 2022

Our markets witnessed a gap down opening as the INR depreciated against the dollar which is usually seen as negative for equities. However, there was no follow up selling and after consolidating near the support of 15700, the index recovered gradually. In last few sessions, our markets have recovered from the swing lows and have been retracing the recent corrective move. As of now there are no signs of a resumption of the downtrend and hence, we expect the index to continue its retracement move in the near term.
 

The 50 percent retracement of the recent corrective phase is placed around 15990 while 61.8% is around 16178. We expect the index to retrace towards these levels in the near term and hence, one should look for buying opportunities in intraday declines. On the flipside, the immediate support for Nifty has now shifted to 15700. Until the index breaks important supports, we expect the Nifty to test the above mentioned levels.

The Banking index showed relative underperformance to Nifty as the recovery was led by sectors such as IT, Metals and Auto. A recovery from these non-banking heavyweights could continue, however the near term momentum in the Bank Nifty too could turn positive once it surpasses the 34000 mark.