Nifty Today Outlook Report - 30th May, 2022

market outlook for 30-may-22

by Ruchit Jain Last Updated: 2022-05-30T11:52:47+05:30

The Nifty consolidated within a broad range of 15900 – 16400 during the week, but it recovered from the lows on the expiry day and continued the momentum on the last trading session to end above 16350 with gains of over half a percent.

nifty

 

In last three weeks, the index has consolidated within a broad range and Nifty has ended around the higher end of the range. However, the relative outperformance from the Bank Nifty index was encouraging and it has already given a breakout from its resistance on the expiry day and has continued its outperformance. Now if we look at the sectoral indices, Nifty IT has shown signs of pullback move from its support while the Nifty Midcap 100 index too has reversed from its previous swing low supports.

Nifty Today:


In the recent corrective phase, Nifty has resisted around its ‘20 day-EMA’ on pullback moves and it has ended marginally above that average on Friday. Looking at the other sectoral indices, we expect the index to continue its pullback in the coming week as well and thus we could see some larger retracement of the previous correction.

The initial retracement resistance will be seen around 16550 which we expect to get tested soon. Above that, the 61.8% retracement which coincides with 200-DEMA is around 16750. On the flipside, 16200 followed by 15900 will now act as support on any declines. Traders are advised to trade with a positive bias for the coming week and look for stock specific approaches where we could see good opportunities.

The global markets too seem to be on a pullback path on the charts which would be the key trigger for our market. Also, our market has recently shown a strong inverse correlation to the US Dollar Index which has corrected from 105 to below 102 now. The US Dollar Index registered high on 13th May post which it has seen correction and the recent swing lows for our markets also coincides with the same time.

Hence, short term traders should keep a close tab on the US Dollar Index and in case we see a resumption of the uptrend in the same, then it would be initial signs to lighten up the longs again.
 

 

Nifty Levels

Bank Nifty Levels

Support 1

16200

35200

Support 2

15900

34850

Resistance 1

16550

35880

Resistance 2

16640

36000

 


Start Investing in 5 mins*

Get Benefits worth 2100* | Rs. 20 Flat Per Order | 0% Brokerage

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.

Open Free Demat Account

& get benefits worth 2100*

Resend OTP
Please Enter OTP
  • Have Promo code?
  • Use code ACT2100
Enter Promo code
Account belongs to

By proceeding, you agree to the T&C.

Start Investing Now!

Open Free Demat Account in 5 mins

Enter Valid Mobile Number