Nifty Strategy for 31st July | Sensex Trades Positive, Pharma & Realty Lead Gains

Last week, the benchmark indices witnessed profit booking at higher levels, with the Nifty ending 0.5% lower, and the Sensex down by 524 points.

Among sectors, the Realty and Pharma indices were the top gainers, rallying near 5%, while profit booking was observed in Banking, FMCG, and IT stocks.

Check out this short video for detailed market update: Market Ready by Kotak Securities

Today, Indian share markets are trading on a positive note.

At the time of writing, the BSE Sensex is trading up by 90 points. Meanwhile, the NSE Nifty is trading up by 23 points..

Among stocks, NTPC and Power Grid are the top gainers from the Sensex, while Bajaj Finance and Asian Paints are the top losers.

Here’s a rundown of today’s expected market movements…

Nifty Technical Analysis:

Technically, during the week, the Nifty consistently faced selling pressure at higher levels.

On intraday charts, the index has formed a lower top formation, which is largely negative. However, the medium-term texture of the market remains on the bullish side.

For positional traders, the 20-day SMA or 19580 (Simple Moving Average) would act as a sacrosanct support zone. If the index succeeds in trading above this level, it could bounce back till 19800.

Further upside may also continue, lifting the market till 19900.

On the flip side, fresh sell-off is possible only after the dismissal of 19580, below which the market could slip till 19450-19400.

Trading Strategy for Nifty:

For the Nifty, traders should closely monitor the 20-day SMA level (19580) as a crucial support.

Consider long positions if the index bounces back above this level with targets around 19800-19900 levels.

On the downside, short positions can be considered if the index falls below the 20-day SMA with targets near 19450-19400 levels.

Bank Nifty Analysis:

For the Bank Nifty, the 20-day SMA or 45250 could be the trend decider level.

Above 45250, the Bank Nifty could move up till 45700-45900. On the other side, below 45250, it could slip till 44700-44500.

In the Bank Nifty, cautious trading is advised, and long positions can be considered if it moves above 45250 with targets around 45700-45900 levels.

Conversely, short positions can be explored if it slips below the 20-day SMA (45250) with targets near 44700-44500 levels.

All in all, caution is advised for day traders, and monitoring the key support and resistance levels is crucial for making trading decisions.

Look out for potential movements in the realty sector and pharma sector.

Stay tuned for further market updates.

See you tomorrow!

Kotak Securities

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.