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Published on 22/05/2020 11:30:42 AM | Source: Motilal Oswal Financial Securities Ltd

We may see further short covering bounce towards 18800 - 19000 zone by Motilal Oswal

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Nifty Outlook

Nifty index opened on a positive note and moved higher in first half of the session. However, we witnessed some selling pressure from higher levels and as a result, index concluded the session a tad above 9100 mark. Nifty continued its winning streak for third consecutive session and formed a small body candle on daily chart. Currently, it is hovering around 20 EMA and Trend line breakdown level on daily chart and thus, 9150 zone would be a crucial hurdle for the index. Now if Nifty manages to sustain above 9150 levels, then we may see a bounce towards 9300 - 9350 zone. On the flipside, support is placed at 9000 then 8888-8800 zone.

 

Bank Nifty Outlook

Bank Nifty started the session with marginal gains and moved higher from initial trades. But it failed to sustain above its Tuesday’s high of 18175 and started correcting from higher levels. It shaved-off all its intraday gains and underperformed the benchmark index by coming in negative territory (down by 0.59%). Recently, we witnessed formation of a Bullish Shark pattern on hourly chart and index started rebounding from its reversal zone. Now, momentum shall pick-up only if it sustains above 18200 levels. In that scenario, we may see further short covering bounce towards 18800 - 19000 zone. While support is now placed at 17400 and then 17200 and 16500 zones.

 

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