Monday, July 4, 2022

NIFTY OUTLOOK & SUPPORT RESISTANCE LEVEL FOR 5 JULY 2022

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The market endured a volatile trading session, Sensex above 53,200 as the bulls surged higher in the final minutes of trading. Nifty 50 was below 15850 but the bulls dominated the last hour of trading with Sensex adding 326 points to settle at 53234 while Nifty gained 83 points to end at 15835. The bulls returned to Dalal Street, ending a three-day losing streak on Monday as headline indices rose in the final hour of trading. Hindustan Unilever rose 4% as Sensex's top gainer, followed by IndusInd Bank, ITC and ICICI Bank. TCS was the biggest laggard, followed by Tata Steel, Mahindra & Mahindra and Dr. Reddy's Laboratories. Bank Nifty was up 1.2% to close at 33940 and broader markets followed. The Indian VIX slipped 1.32% to end at 21. Markets ended their three-day losing streak, helped by the backdrop of the constructive Morning Star pattern in Niftys' daily technical landscape, followed by Friday's Hammer Candle. The daily RSI is in the bullish crossover. In the short term, the index could move towards 15900/16000. At the lower end, support is visible at 15750/15650. It looks like investors are looking forward to a rebound and the optimistic takeaway is that Nifty could likely shoot to the psychological 16000 level with a two week perspective. Technically, Nifty's main support for Tuesday's trading can be seen at 15710. Expect a fall in selling below weekly support at 15450. Nifty's main hurdle is seen at 15925 and then all eyes are on the 16175 level.

Resistance: 15750, 15850, 15950

Support: 15650, 15550, 15450

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