Market Overview for 18th August 2022

August 17, 2022 by Ayush Anjana · 2 min read

The Indian market continued the momentum with both nifty and banknifty opening around  the previous day’s range and ending up closing higher. All sectoral indices were positive except nifty auto which was down by -0.42%, Nifty- IT is approaching the 30570 resistance which has a high probability of being broken on the upside, post which good momentum can be seen. Among all the Fno stocks , jubilant food has seen a breakout from the range where it ended up consolidating for nearly 180 days. Highly likely the trend will continue.

Nifty Futures

Daily chart 

• Nifty continues the upward trend , highly likely we are approaching the 18140 level which was the previous trend changing confluence level in april 2022
• As previously discussed , the trend is surely looking bullish but the way nifty is heading higher with little to no pause , the risk reward for positional long not favourable
• In case of any dip in the market , the key support area of 17600-17700 will be a good area for long positions

Nifty futures 45 Minutes chart analysis

• For Intraday Nifty futures opened above the previous day’s high , taking a support at the previous day’s high , nifty futures bounced closing around near the high of the day
• For the expiry expecting a range of 17900-18140 where 17900 is the previous days high and 18140 is the key resistance level as per larger time frame
• In case the index breaks the 17900 level we may head toward the 17600-17700 support area

Nifty futures 15 min chart https://www.tradingview.com/x/P6QtCpF1/

Banknifty Futures

Daily chart

• Unlike nifty , banknifty also have been observing a strong momentum
• In case of any dip , good support area for positional long around 38800-39000
• With 40000 as overhead resistance , even though the trend is strong fresh long position at current juncture are not favourable from risk reward point
• Thus better to wait for the reaction around key level.

Banknifty 45 minute chart analysis

• Expecting an expiry around 39500 -39900 with the strong uptrend and previous close at day’s high as the evidence
• Once we trade below 39500 and sustain 30 min below that we can expect a range bound day between 39100-39500 where 39100 is tuesday’s low from where banknifty bounced  

Banknifty futures 15 Min chart https://www.tradingview.com/x/l65Li11O/