Tuesday, January 4, 2022

INDEX OUTLOOK & TRADING TIPS FOR WEDNESDAY 05 JAN 2022

Bulls continue to rule the street as investors lapped up stocks by taking positive cues from global markets. There could be bouts of volatility going ahead as concerns over rising inflation, higher interest rate scenario and increasing cases of Omicron variant would keep investors on the edge. The Nifty opened with a positive note and successfully cleared the key resistance level of 17700. Despite surging covid cases, investor sentiments remain positive globally as reports suggest lower impact of the new variant on economic recovery.

On intraday charts, the index has formed a promising breakout continuation formation which is broadly positive. For day traders, the support has shifted to 17750 from 17650. As long as the index is trading above 17750, the chances of it hitting 17850-17900 levels would turn bright. However, below 17750, a strong possibility of a quick intraday correction up to 17700-17650 is not ruled out.

Resistance: 17750, 17825, 17975

Support: 17675, 17620, 17575

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