Indian stock market began the week with an offbeat note though later it encountered selling pressure. Nifty was trading below the important level of 24,900 and then staged a strong rebound. Nifty turned out of this downward trend and regained almost 229 points of the tank after 9.35 AM. Good buying in the private banking segment was the key support to this bounce-back. At the end of the trading session, Nifty closed marginally lower than 25,100 and it fell by about 0.5 percent.
Today, traders and investors are interested in knowing how Nifty and Bank Nifty would behave on Tuesday, 22 July. Now, in this blog, we shall get to know what experts are foreseeing about the movement of Nifty and bank Nifty and which important levels you should be eyeing. However before going into detail, we are going to make a brief recap of what occurred in the market on Monday.
Eternal Shares Raced up Private Banks rescued the Market;
On Monday, Nifty was boosted by two prominent private sector banks, HDFC Bank, and ICICI Bank. HDFC Bank stock prices shot up up to 2% so did ICICI Bank stock prices at 3%. Also, Eternal has been the best performer in the Nift index so far whereby the stock has surged up 7 percent to end the day at 275.20. Surprisingly, the Eternal stocks have already increased by 30 percent already this year regardless of the fluctuations in its profits.
Market Performance-Sector wise
Out of the sectoral outlook, Nifty Financial Services and Nifty Bank as well as Metals index were the ones that contributed the most to market recovery. However, the Oil & Gas, PSU Banks, and FMCG dominos were under selling pressure, and hence restricted the total market gains.
- Nifty Midcap 100 Index settled at a positive of 0.62 percent.
- By the close of the session, Nifty Smallcap 100 Index stood steady.
Tuesday-Company Results
- One PTT Communications (Paytm)
- Dalmia Bharat
- Zee Entertainment
- Dixon Technologies
- ideaForge
- IRFC
- Cyient DLM
Besides these, Havells India and Oberoi Realty companies have declared their results outside the market hours during Monday. These are the stocks which may continue to be in the limelight of Tuesday trading session.
The market was of jitters all through Friday with traders hoping to get some clarity regarding what happened between India and the US in the recent past.
This is what nifty 50 charts are saying
Nagaraj Shetti of HDFC securities states on Monday, 22 nd July, the low at 24,882 on the chart of the Nifty can now be viewed as a new low low on the Nifty. A market that people push up, in the case of the market pushing upwards now, this may be presenting a new selling opportunity. But, when Nifty breaks the 25,250 figure in a convincing manner, the present bear-market trend can turn around.
Rupak De who manages LKP securities noted that Nifty received its support around its 50-day EMA (Exponential Moving Average) in the daily chart which helped to rebound in the day. On his part:
- An important level of support will be 24,900.
- Bears may become stronger in the case Nifty moves lower.
- On the positive news, the resistance range is 25,200 to 25,260.
Will there be a Bullish Trend in Nifty?
According to Nandish Shah at HDFC Securities, Nifty has maintained its EMA-50 line (currently moving around 24,938) over the last two days. Recovery of Monday and its positive closing is a sign that the probability of an up move is higher. He suggests:
- The traders have the ability to change their positions between short and long.
- Put a stop-loss on 24,900.
- There would be resistance in the region of 25,255.
Equally, 24,900 has been referred to as a make-or-break zone by Rajesh Bhosale of Angel One. As long as Nifty continues to trade above this level chances are that the market trend will continue to be good. He highlights:
- The 25,200–25,250 range as a crucial resistance zone.
- This level is also aligned with the 20 day EMA, and the swing high it had last week.
- Closer above this area may trigger a new trend of bulls.
What is in store for Bank Nifty?
Bank Nifty Index landed a close at 56,952.75 with an approximate increase of 1.19%. It was its best single-day rise over the past fortnight. Bank Nifty proceeded to rebound and create a bullish candle in the scale of a daily chart after testing the rising tendency of the trendline.
- Bank Nifty has regained its 9-day EMA and this is indicative that the short-term downtrend may slow down.
- Nevertheless, the index continues to trade under the 20-day EMA.
Om Mehra of SAMCO Securities said:
- An immediate support level is 56,600, the trendline to be honest.
- In case the state of Bank Nifty closes above the range of 57,100-57,200, it can pick up to 57,450.
Conclusion: Key Levels to Watch
According to the analysis of experts, the following are the most important levels to monitor:
- Nifty Support: 24,900
- Nifty Resistance: 25,200–25,260
- Bank nifty support: 56,600
- Bank Nifty Resistance: 57,100-57, 200 (target 57, 450)
Till Nifty remains above the 24,900 mark, a bullish bias may remain. The upward momentum can be validated through a breakout on top of 25,250. In case of Bank Nifty a close above 57,100 is likely to elicit new purchases.
Disclaimer:
The gift ideas or viewpoints posted on this blog have the foundation on professional analysis and brokerage reviews. One should not perceive them as direct investment sustenance. Before making an investment in the stock market, it is a must to always consult a recognized financial advisor.