18 July Nifty Trade Setup: Key levels to monitor Heart Break of 18 July -Will it give traders a chance of making profits?
The Indian share market was displaying an ambiguous movement and traders are currently observing what will be in store on 18 July. This blog shall be about the main levels of Nifty, the technical look and the important things to note at as well as the potential profitability by traders.
On 17 July, Thursday, Nifty traded with positive momentum which failed to sustain its initial gains. The volatility was high in the market because it expired weekly. The index attempted to retrieve its mid-session but eventually ended 101 points down at 25,111.
Well now what can traders hope to see in Nifty on 18 July? What levels will become critical? With wisdom, how about getting an expert view point. However, first, we should verify what was happening in the market on 17 July and which factors will be the most significant towards 18 July.
Market Overview: Profit Booking Dominates
On Thursday, profit booking in the Indian stock market was across the board. As Nifty shed 101 points, there was a subdued fall in the midcap and smallcap segments as well. Specifically:
- The Nifty Midcap 100 dropped by 0.17%.
- Nifty smallcap 100 index declined by 0.12%.
Not every sector however performed poorly. On the sectoral front:
- There was certain strength in Realty, Metal and Consumer Durables sectors.
- Market performance was weighed down by a lot of IT and Banking stocks, and this had an overall negative effect.
This profit booking shows that investors were cautious, especially near higher levels.
FII and DII Activity: Who Was Buying and Selling?
On Thursday FIIs were net sellers in the cash segment. This increased the selling pressure in the market. Domestic Institutional Investors (DIIs) though were net buyers thus helping a little and reducing the downsides to some degree.
FII selling has been an irritant during the last few sessions and it may cause the markets to remain under pressure due to this continued selling. DII purchasing on the other hand did help level the negative mood.
Focus on Q1 Results: Next Direction Depends on Earnings
Q1 results of large companies will be very crucial in determining the next step of the market. These earnings will be of interest to investors on 18 July:
- Reliance Industries
- Hindustan Zinc
- JSW Steel
- Bandhan Bank
- IndiaMART Intermesh
Meanwhile, firms such as Wipro, Axis Bank, Jio Financial Services, and Indian Hotels announced their earnings when the market was shut on 17 July. The effect of these outcomes could be evidenced in the session of the Friday.
The market can regain its legs with positive reports by heavy weights such as Reliance and Wipro. Otherwise more selling pressure may result because of poor performance.
Technical View: Key Nifty Levels to Watch
It is time to learn about the key support and resistance points of Nifty as transmitted by market gurus.
HDFC Securities’ Nandish Shah says:
- The significance of Nifty holding above 25,000 will prevent further depreciation.
- Initial resistance is put at 25,250.
- The zone of 25,000 to 24,900 is regarded as good support at the moment.
In his opinion, provided that Nifty remains at the level higher than 25,000, the index may stabilize. However, the mood is not that good at the current price.
Rupak De of LKP Securities says:
- Throughout the day on Thursday, Nifty was put under pressure.
- The index could not sustain above 25,260 signifying a break down of the consolidation phase.
- Next, potential bearish target may be approximately 24,900, he thinks.
Hardik Matalia of Choice equity broking feels:
- In the case of Nifty, a significant decline can occur in case it slides below 24,900 in loud music.
- Conversely, in case Nifty clears the resistance area of 25,400-25,500, it is likely that a new ascent will be observed.
Therefore, one has to pay close attention to the support 24,900 and resistance 25,400 by traders. Breaching or breaching of these levels will determine the direction of the next big movement in Nifty.
What Traders should do?
To traders, the plan is easy:
- Bullish outlook: Above 25,000, provided it clears 25,250-25,400, a trader can wait to accumulate stocks with a view of upside of 25,500 or above.
- Bearish Take: In the event that Nifty declines below 24,900, traders can take some short positions because there is a likelihood that the index may decline further to 24,700 or even below.
It is extremely volatile hence traders should conduct their trading operations through very tight stop-losses and not over-leverage. The direction will also be governed by the earnings season and the overall trends on the international markets.
Key Factors to Watch on 18 July:
- Reliance, JSW Steel, and Hindustan Zinc Q1 results.
- Some recent movements in IT, Banking Stocks.
- FII Selling trend.
- GloGlobal cues and US market trend.
- Crude oil, and dollar index.
Conclusion: Cautious Approach Recommended
Summing up, Nifty is in a cess zone but an essential support is that of 25,000. It is within the region of 24,900 to 25,400 where the market will be able to recover or to further decline. The traders are recommended to be cautious, treat important areas, and pay attention to the quarterly reports of leading companies to predict how the market will go next.
Disclaimer: This blog is non-profit making. Opinions given on this page are provided by experts and improvement in the market. One should consider a professionally qualified financial expert before investing.