It seems the Indian stock markets are having a mid-year party.
The benchmark indices continued their positive momentum and displayed a range-bound movement on Tuesday, with Nifty closing up 30 points and Sensex up 180 points.
Notably, the IT sector continued its positive momentum, rising over 1%, while profit-booking was observed in media and PSU bank stocks, resulting in declines of over 1% in both indices.
Today, Indian share markets are trading on a positive note following the trend on Gift Nifty.
At the time of writing, the BSE Sensex is trading higher by 247 points, while the NSE Nifty is trading up by 72 points.
Among stocks, NTPC and IndusInd Bank are the top gainers from the Sensex, while Hindustan Unilever and TCS are the top losers.
Here’s a rundown of today’s expected market movements…
Yesterday, from a technical standpoint, the index exhibited range-bound action following a strong uptrend rally.
Key support and resistance levels provide guidance for day traders, and the bull wave is expected to continue as long as the index remains above certain levels.
For day traders, 19700 holds significant importance as a key support level. A break below 19690 could trigger a quick intraday correction towards 19600-19550.
On the other hand, as long as the index trades above 19700, the bullish sentiment is likely to persist, with potential upward movement towards 19850.
Consider shorting long positions between 19800 and 19850 levels.
However, if Nifty sustains above 19850, it may lead to further upside momentum, potentially pushing the market towards 19950-20000. In such a scenario, buying Nifty with a stop loss at the lowest level of the day is advisable.
Failure to cross the 19850 level may invite another round of profit-booking.
The Bank Nifty faces resistance between 45700 and 46000.
A breakthrough above 46000 could signal a fresh uptrend, potentially driving the index towards 46300 or 46500.
Following the strategy of buying on dips, consider initiating long positions around 45100/45000 with a stop loss at 44700.
The Nifty IT index remains in an uptrend, with expectations of further rally above 31750 levels.
This momentum may propel the index towards 32000 and 32500 levels. Support levels can be found at 31000 and 30800.
All in all, the markets are witnessing a range-bound movement, with the IT sector continuing its positive momentum.
Traders should closely monitor the key support and resistance levels mentioned in the analysis to make informed trading decisions.
Shorting long positions and buying on dips are potential strategies to consider.
Stay tuned for further market updates.
See you tomorrow!
Disclaimer: The information provided in this article is based on technical analysis and does not constitute financial advice. Traders should exercise their own judgement and consult with financial professionals before making any investment decisions.
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