Nifty & Banknifty Feeling the Heat: Will the Bulls Find Their Mojo?
Yesterday’s Pick
SHOPERSTOP Rs 6,000 (Quantity 200)
TCS 25JUL24 4000 CE Rs 11,375 (Per 5 Lot)
HCLTECH FUT Rs 11,200 (Per 1 Lot)
SUNPHARMA FUT Rs 5,250 (Per 1 Lot)
Nifty Technical View:
The Nifty 50 has created a bearish candlestick pattern with a small upper shadow on the daily charts, suggesting weak activity at higher levels. Despite this, the index continues to form higher highs and higher lows, showing a positive trend in momentum indicators such as the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence). It is expected that the index will consolidate, with immediate support around 24,200 and more significant support at 24,000. On the upside, the levels of 24,400 to 24,500 may act as resistance.
Indian Vix
Volatility has been decreasing for the past three days, ending at its lowest point since June 14, which is a positive sign for bullish investors. The India VIX, known as the fear gauge, fell by 2.65 percent, dropping to 12.86 from 13.2.
FII/DII
Foreign institutional investors (FIIs/FPIs) purchased Indian stocks worth Rs 2,575.85 crore, whereas domestic institutional investors (DIIs) sold Indian stocks totaling Rs 2,375.18 crore during the same period.
Put Call Ratio:
The Nifty Put-Call ratio (PCR), which reflects the market sentiment, increased to 1.27 on July 4 from 1.24 in the previous session. A rising PCR, or a value above 0.7 and especially above 1, indicates that traders are selling more Put options than Call options, generally signaling a bullish sentiment in the market. Conversely, if the ratio drops below 0.7 or approaches 0.5, it suggests that selling in Call options is higher than in Put options, indicating a bearish sentiment.
Nifty and Bank Nifty Support and Resistance level:
Nifty :- Resistance 24,375, 24,400, and 24,450
Support based 24,280, 24,255, and 24,210
BankNifty: Resistance 53,300, 53,430, and 53,635
Support based 52,885, 52,760, and 52,550
Index Future levels
Nifty Futures Sell below 24300. The suggested targets for this are 24,100 and 24,000, with a stop loss set at 24,550.
Bank Nifty future buy above 53,300 index is expected to see up side levels of 53600 and 53,700 and level 52,950 will act as a stop loss.
Stocks in the news:
Dr. Reddy : Dr. Reddy’s Laboratories plans to collaborate with the US Food and Drug Administration (USFDA) to address and resolve any concerns in a timely manner. According to their top leadership, they will work closely with the USFDA to ensure that the biosimilar rituximab becomes available to patients in the U.S. as soon as possible.
Reliance : Mukesh Ambani’s Reliance Retail Ventures is set to launch the Chinese fast fashion label Shein in the coming weeks. According to The Economic Times, Shein’s products will be available for purchase both on Reliance’s app and in its physical stores.
Technical Pick: Aurobindo Pharma
Buy at ₹1255 | Target price: ₹1355 | Stop loss: ₹1200.
Aurobindo Pharma Ltd, an Indian multinational pharmaceutical company established in 1986, operates across various sectors such as Active Pharmaceutical Ingredients (APIs), generic medications, biosimilars, advanced drugs, and consumer healthcare.
Aurobindo Pharma’s share price has shown resilience, rebounding from its support range and surpassing a minor resistance level at ₹1225, which is near its 20-day Exponential Moving Average (EMA). This indicates underlying strength in the stock. Currently trading at ₹1254.65, it remains above key moving averages, including the short-term (21-day), medium-term (50-day), and long-term (200-day) EMAs, signaling a bullish sentiment.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
Also Read: Independence Day Surprise: How Forex Markets Keep Their Cool, Are Gold Prices Set to Sparkle with the Fed’s Rate Cuts?
Recommended Read: In Focus China’s Panda Strategy: Cute Gesture or Economic Marvel to Boost the Yuan?
Want help on your trade?
Chat with our Analyst