Nifty 50 Intraday Trade Setup for 05th July 2022

Nifty50 Index on Monday snapped a three-day losing streak and closed higher on Monday. The U.S. market was closed for a holiday yesterday and hence in the absence of strong global cues, we are likely to see a flat or slightly positive opening. We are still in the declining markets which are always tough for intraday traders because of the sudden up and downside moves and one must be ready for it.

Nifty 50 Index – Daily TF
After hitting a fresh 52-week low of 15,183, the index has given a good recovery and has stopped making lower lows. The index is consolidating in the wider range is 15,950 / 16,000 to 15,500 with a positive bias. A sustainable up-move above 16,000 (psychological resistance) will activate the XABCD pattern and is expected to pull the Index towards the next resistance of 16,300 and then towards 16,600 after gap fill. If the index fails to sustain 15,500, it can retest the previous swing low of 15,180/200 and we can see more fall below these levels to 14450/500(ABCD pattern getting activated).

Nifty 50 Index – 2Hr TF
The index is taking support from the dynamic trendline and is facing multiple rejections on the upside forming an ascending triangle pattern. A fresh uptrend rally is possible if the index breaks out and sustains 15,950/16000 levels and the index can test 16,300. However, if the index fails to sustain the previous swing low (15,500), it can fuel a downfall to 15350/15,200 levels.