Nifty Today Outlook Report - 31st May, 2022

Nifty started the day with a gap up and traded with a positive bias throughout the day. All the sectors contributed to the up move and the index ultimately ended above 16650 with gains of over 300 points.

During last week, the Nifty index consolidated within a broad range and had ended around its ‘20 DEMA’. The resistance was breached with a gap up opening today and broad market participation was seen then as all the sectoral indices ended on a positive note. During last week, the Bank Nifty index already had taken the leadership and had given an advance signal of a larger pullback coming.

Nifty Today:

The recovery in the global markets (especially Nasdaq) led to a recovery in the beaten down sectors today and the IT space witnessed a sharp surge to provide support to the benchmark. Today’s gap area in Nifty at 16500-16370 will now be seen as an immediate support for the index. On the flipside, the 200 DEMA at 16750, the previous support zone of 16825-16900 are the immediate levels to watch. Traders should look for stock specific approach now from a near term perspective and look to ride this trend with a trailing stoploss.