07-07-22, FinancialMarket REPORT

 By Wednesday's closing the Nifty Bank and Nifty Madcap showing positive signal for swing trading but not yet in Nifty50 

The Nifty50 closed near the psychological 16,000-mark despite high volatility in the market, thanks to the cooling down of oil prices and positive European cues. The rally across sectors also aided momentum as Auto index and FMCG index gained 2.6 percent each.

The broader markets also joined the party but the breadth was not very strong. The Nifty Midcap 100 index gained 1.9 percent and Smallcap 100 index rose half a percent, while 1,111 shares advanced against 823 declining shares on the NSE.

The Nifty50 opened flat at 15,818 and gradually moved higher to hit an intraday high of 16,011 amid volatility. The index finally closed at 15,990, the highest level since June 10, up 179 points or 1.13 percent.

(The index closed above opening levels, and hence there was a formation of bullish candlestick pattern on the daily charts. The pick up in momentum after significant volatility and rangebound trade indicated that the index can touch 16,172 and close the bearish gap zone created in mid-June if it manages to sustain above 15,800, the immediate crucial support, experts said.)

06-07-22, FinancialMarket REPORT

 present market is suitable for intra day only, but not for swing and positional

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The market seemed to have given a false upside breakout on July 5 as the Nifty50 surpassed 15,900 in the opening and then 16,000 as well but failed to hold on to both levels due to profit booking in the latter part of the session, registering a bearish candle on the daily charts as the closing was lower than opening levels.

The BSE Sensex fell 100 points to 53,134, and the Nifty50 declined 25 points to 15,811, while the broader space reported a flat closing with negative bias amid mixed market breadth. "A reasonable negative candle was formed on the daily chart with a long upper shadow. Technically, this pattern signals a false upside breakout of the strong resistance as well as the upper range at 15,950 levels (high low range of 15,700-15,900 levels)," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.

Hence, he feels the short-term trend of the Nifty seems to have reversed down from the highs and the current chart pattern indicates the possibility of further weakness in the short term. "One may expect Nifty to slide down to 15,600-15,500 levels again in the near term."

As per the pivot charts, the key support level for the Nifty50 is placed at 15,722, followed by 15,634. If the index moves up, the key resistance levels to watch out for are 15,963 and 16,114.

NIFTY  BANK:

Nifty Bank declined 125 points to 33,816 on Tuesday, forming bearish candle on the daily charts. The important pivot level, which will act as crucial support for the index, is placed at 33,595, followed by 33,374. On the upside, key resistance levels are placed at 34,199 and 34,582 levels.

FII and DII data:

Foreign institutional investors (FIIs) turned net buyers for the first time since May 30, buying shares worth Rs 1,295.84 crore, whereas domestic institutional investors (DIIs) turned net sellers for the first time since April 11, selling shares worth Rs 257.59 crore on July 5, as per provisional data available on the NSE.