Nifty & Bank Nifty: Will They Break Out or Break Down Next?

Nifty & Bank Nifty Stuck in Neutral: Breakout or Breakdown Next?
Yesterday’s Pick
ZYDUSWELL Rs 36,600 (Quantity 200)
DRREDDY 25JUL24 6400 CE Rs 31,250 (Per 5 Lot)
HDFCBANK FUT Rs 22,000 (Per 1 Lot)
TATACONSUM FUT Rs 5,400 (Per 1 Lot)

Nifty Technical View:

The bulls have regained control of Dalal Street from the bears. The Nifty 50 index formed a Doji candlestick pattern on the daily charts, suggesting that there might be a period of consolidation. However, with the index continuing to make higher highs and higher lows and positive momentum indicators, the overall trend remains positive. If the index can stay above 24,200, it is possible that it could reach 24,500 in the coming sessions. Until then, the index may continue to consolidate, with support around the 24,000 level.

Indian Vix

Volatility has decreased further, providing more confidence to the bulls. The India VIX, also known as the fear index, dropped by 3.19 percent to 13.21, marking its lowest closing level since June 21.


Foreign institutional investors (FIIs/FPIs) purchased Indian stocks worth Rs 5,483.63 crore, whereas domestic institutional investors (DIIs) sold Indian stocks totaling Rs 924.43 crore during the same period.

Put Call Ratio:

The Nifty Put-Call ratio (PCR), which reflects market sentiment, increased to 1.24 on July 3 from 1.15 in the previous session. A rising PCR, or one higher than 0.7 and exceeding 1, suggests that traders are selling more Put options than Call options, typically indicating a strengthening bullish sentiment in the market. Conversely, if the ratio drops below 0.7 or moves towards 0.5, it means that selling in Call options is higher than in Put options, signaling a bearish sentiment in the market.

Nifty and Bank Nifty Support and Resistance level:

Nifty :- Resistance 24,305, 24,330, and 24,370

Support based 24,230, 24,205, and 24,165

BankNifty: Resistance 53,240, 53,420, and 53,715

Support based 52,650, 52,465, and 52,170

Index Future levels

Nifty Futures buy near 24350. The suggested targets for this are 24,550 and 24,700, with a stop loss set at 24,130.

Bank Nifty future buy above 53,100 index is expected to see up side levels of 53400 and 53,600 and level 52,800 will act as a stop loss.

Stocks in the news:

Zomato : Zomato has decided to abandon its plans to enter the lending business. According to a filing with the BSE, the company announced that its wholly-owned subsidiary, Zomato Financial Services, has voluntarily withdrawn its application for a non-banking financial company (NBFC) license with the Reserve Bank of India (RBI).

Britannia : Britannia Industries Limited, a leading Indian multinational food products company, has made a significant move by appointing Urjit Patel as additional non-executive independent Directors of the company for a term of five years, as per an exchange filing .

Momentum Pick : RBLBANK

Buy at ₹270 | Target price: ₹299 | Stop loss: ₹256.

RBL Bank Limited, formerly known as Ratnakar Bank, was established in 1943 in Kolhapur, Maharashtra. Over the years, it has grown significantly, expanding its presence nationwide and offering a wide range of banking and financial services, including wholesale banking, retail banking, and treasury operations. During the fiscal year 2018-2019, the bank’s total deposits increased by 33.01%, reaching Rs 58,394.42 crore. Additionally, the bank successfully completed a capital infusion of Rs 1,680 crore in August 2017.

Net profit for the last two quarters has increased from ₹244.89 crore to ₹364.43 crore, representing an average growth of 32.8% per quarter. Mutual Funds have raised their holdings from 14.52% to 15.95% in the March 2024 quarter. Retail investors have also increased their holdings, from 51.98% to 54.29% in the same period. Additionally, revenue has been rising for the past 11 quarters, growing from ₹2.62K crore to ₹4.21K crore, with an average increase of 4.6% per quarter.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

Also Read : Economic News: Volatility Rises as FOMC Minutes Are Released Are Silver Price On The Verge Of a Big Move?

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