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Nifty: 15780

Technical Outlook

• The daily price action formed a small bull candle with a long upper shadow signaling profit booking at higher levels . A follow trough up move above Thursday high (33659 ) will signal pause in the last three sessions profit booking trend . Failure to do so will indicates extension of the current decline . Volatility is likely to remain high in the coming sessions amid volatile global cues .

• Going ahead, we expect buying demand to emerge around 32500 -32800 levels being the 80 % retracement of the previous week up move (32335 -34180 ) . The index is expected to gradually resolve higher and head towards 34500 levels in coming weeks as it is the higher band of bearish gap area of 13th June 2022 (34483 ) and 61 . 8 % retracement of previous major decline (36083 -32290 )

• The index has key immediate support around 32100 -32300 levels as it is the last two week’s almost identical lows which also confluence with the March 2022 lows placed at 32155 levels

• Amongst momentum oscillators, weekly RSI has formed a positive divergence with last week reading of 38 against May 2022 reading of 37 while price made new low . Such divergence is indicating receding downward momentum and likely to trigger further technical pullback in coming weeks In the coming session, index is likely to open on a flat to negative note amid soft global cues . Volatility is likely to be high on account of the volatile global cues . After a soft opening use intraday dips towards 33080 -33150 being the 61 . 8 % retracement of the previous week up move (32335 -34180 ) for creating long position for the target of 33410 , maintain a stoploss at 32970

NSE Nifty Daily Candlestick Chart

Nifty Bank: 333425

Technical Outlook

• The daily price action formed a small bull candle with a long upper shadow signaling profit booking at higher levels . A follow trough up move above Thursday high (33659 ) will signal pause in the last three sessions profit booking trend . Failure to do so will indicates extension of the current decline . Volatility is likely to remain high in the coming sessions amid volatile global cues .

• Going ahead, we expect buying demand to emerge around 32500 -32800 levels being the 80 % retracement of the previous week up move (32335 -34180 ) . The index is expected to gradually resolve higher and head towards 34500 levels in coming weeks as it is the higher band of bearish gap area of 13th June 2022 (34483 ) and 61 . 8 % retracement of previous major decline (36083 -32290 )

• The index has key immediate support around 32100 -32300 levels as it is the last two week’s almost identical lows which also confluence with the March 2022 lows placed at 32155 levels

• Amongst momentum oscillators, weekly RSI has formed a positive divergence with last week reading of 38 against May 2022 reading of 37 while price made new low . Such divergence is indicating receding downward momentum and likely to trigger further technical pullback in coming weeks In the coming session, index is likely to open on a flat to negative note amid soft global cues . Volatility is likely to be high on account of the volatile global cues . After a soft opening use intraday dips towards 33080 -33150 being the 61 . 8 % retracement of the previous week up move (32335 -34180 ) for creating long position for the target of 33410 , maintain a stoploss at 32970

Nifty Bank Index – Weekly Candlestick Chart

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