The Indian equity market is likely to open higher tracking gains in global peers as cooling inflation in the US raised bets that the Federal Reserve will soon end its monetary policy tightening cycle.
Trends on GIFT Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading at 19,550.00 level as compared to Nifty’s previous close of 19,413.
On Thursday, the Indian equity benchmarks ended higher amid positive global cues.
The Nifty continued to be in the range of 19,300-19,500. Analysts believe this range needs to be taken out on a closing basis to get the trend confirmation.
The index formed a small negative candle on the daily chart with a long upper shadow.
“Technically, this pattern indicates lack of strength in the market to sustain the new highs. We observe range bound action in the market around 19,500-19,300 levels in the last one week and the sideways movement is expected to continue for the short term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Nifty
During Thursday’s trading session, Nifty reached a new record high of 19,567 but could not hold on due to selling pressure, resulting in a significant decline by the end of the day.
“It exhibited high volatility throughout. The daily Relative Strength Index (RSI) indicated a bearish crossover. Currently, the trend appears to be sideways in the short term. Support is expected at 19,300, while resistance is seen at 19,600,” said Rupak De, Senior Technical analyst at LKP Securities.
Meanwhile, Shetti believes any weakness below the immediate support of 19,300 could drag Nifty down to 19,200-19,100 levels in the near term. A decisive upside above 19,550 is likely to bring more upside for the short term.
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Bank Nifty
The Bank Nifty index was unable to surpass the level of 45,000, indicating a bearish sentiment in the index. On the other hand, the support level of 44,700 was maintained, which suggests some buying interest at that level.
“However, a break below this support level may open the gates for further downside towards 44,500-44,000, which coincides with the 20-day moving average (20DMA). For the index to turn bullish, it needs to surpass the level of 45,000 on a closing basis. This would indicate a potential shift in the market sentiment towards more bullishness,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
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Updated: 14 Jul 2023, 08:11 AM IST