On July 22, Indian equity markets saw sideways trading all day before closing flat to negative. The Sensex closed at 82,186.81, down 13.53 points, or 0.02%, and the Nifty down 29.80 points, or 0.12%, to 25,060.90. 988 stocks rose and 1,492 fell, indicating poor market breadth that was influenced by widespread selling pressure across all sectors.
Benchmark indices Nifty and Sensex are set for a positive start on July 23, tracking upbeat global cues after the US and Japan sealed a trade deal, raising hopes of further agreements—possibly between the US and India. At 7:40 am, Gift Nifty traded 76 points higher at 25,160.
Markets have been trading within a range amid trade tariff worries and a slightly sluggish start to first quarter earnings. On Tuesday, all sectoral indices traded in a sea of red. Fear and nervousness in the markets continue to subside, as indicated by the India VIX index, which fell 3.5 per cent to 10.82.
Foreign portfolio investors (FPIs) were net sellers of Rs 3,548 crore worth of shares in Indian equities on July 22, while domestic institutional investors (DIIs) net bought Rs 5,239 crore worth of shares, the highest since June 16, according to provisional NSE data.
Nifty Outlook Today
"On the daily chart, Nifty formed a bear candle as it reacted lower from the 20 days EMA signaling selling pressure at higher levels around 25,200-25,250. Index is seen consolidating in the range of 24,900-25,250 in the last 5 sessions. Nifty has strong hurdle around 25,200-25,250 levels being the confluence of the 20-day EMA and the previous week's high. Only a decisive breakout above 25,250 would be required to signal a potential end to the recent corrective phase and could unlock further upside towards the 25,500-25,600 levels in the near term. On the downside, a breakdown below 24,900 on a closing basis would indicate an extension of the last three weeks' corrective decline," commented the research analysts of Bajaj Broking Research.
As long as the index holds above 24,800, scope for supportive buying on dips remains intact. A decisive close above 25,250 is essential to negate the prevailing bearish undertone and revive bullish sentiment. Relative Strength Index (RSI) continues to hover below the neutral 50 mark, confirming the lack of positive momentum and reinforcing the current cautious market tone. Until a directional breakout occurs on either side, the index is likely to remain trapped in a
The Put-Call Ratio (PCR) slipped from 0.86 to 0.70, indicating a pickup in call writing and suggesting a tilt towards bearish positioning. The tug-of-war between call and put writers near key strikes underlines the ongoing uncertainty in the market
India VIX dropped sharply by 4.02 percent, closing at 10.75, remaining well below the crucial 13-mark. This persistently low volatility environment indicates that while bears are active during intraday pullbacks, there is no sign of panic or aggressive unwinding. The overall price action continues to reflect a disciplined consolidation phase, rather than a deep correction or trend reversal.
Bank Nifty Outlook Today
"Bank Nifty formed a bear candle signaling profit booking at higher levels around the last week high and the trendline resistance drawn from recent swing highs. A decisive breakout above the resistance area of 57,300 would open the door for a further rally towards the 58,000 marks in the coming weeks. On the downside, immediate support is seen in the 56,000-55,700 zone - a crucial area marked by the confluence of the 50-day EMA and key Fibonacci retracement levels from the prior uptrend," stated the research analysts of Bajaj Broking Research.
low-volatility, range-bound environment.
"The Nifty Bank index has established a strong foothold near the 0.50 percent Fibonacci retracement level, currently placed at 56,400, which serves as a crucial support and last line of defence for the bulls. This reinforces the significance of the 56,500–56,400 area in determining the next directional leg for the index," Dhupesh Dhameja of SAMCO Securities said. "Despite multiple attempts, the index has been struggling to clear its swing resistance zone, which remains heavy near the 57,300 mark, highlighting sustained supply pressure from higher levels. The structure remains broadly neutral-to-weak, and as long as the index holds above 56,400, buyers may attempt to defend key support. However, a decisive breakout above 57,350 is essential to negate the bearish bias and reignite upward momentum," he added.
source: Greynium Information Technologies
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