Nifty Strategy for 25th July | Markets Trade Flat, Tech Sector Shines
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- Updated 04 Oct 2023
Indian markets are on a rollercoaster ride. After having a party in the first half of July, they are currently trading range bound.
The benchmark indices continued their weak momentum on Monday, with the Nifty closing down 73 points while the Sensex was down 299 points.
Check out this short video for a detailed market update: Market Ready by Kotak Securities
Several major sectoral indices saw selling pressure at higher levels, with the FMCG index being the biggest loser, declining by over 1.75%.
Today, Indian share markets are trading on a mixed note following the trend on Gift Nifty.
At the time of writing, the BSE Sensex is trading lower by 9 points. Meanwhile, the NSE Nifty is trading up by 6 points..
Among stocks, JSW Steel and Hindalco are the top gainers from the Sensex, while ITC and Asian Paints are the top losers.
Here’s a rundown of today’s expected market movements…
Nifty Analysis:
Technically, the Nifty index faced selling pressure at sustained higher levels after a slow start yesterday.
On the intraday chart, it is forming a lower top, and on the daily chart, it has formed a small bearish candle, indicating a negative sentiment.
Analysts believe that the index is likely to head towards 19600 or 19500 levels.
If the market fails to break the 19650 level, it may move back towards 19800, which is the ultimate resistance level for the market.
However, if the index falls below 19650, it may slide further towards 19600-19500 levels. On the other hand, if the index crosses the 19800 level, it may extend a pullback towards 19850-19900.
Trading Strategy for Nifty:
Caution is advised, and traders should monitor the key support and resistance levels mentioned in the analysis.
Be prepared for the possibility of further downside towards 19600 or 19500 levels, but also be watchful for a potential pullback towards 19800 if the market holds above 19650.
Bank Nifty Analysis:
The Bank Nifty closed below the level of 46000, signalling a potential decline towards 45700/45600 levels.
On the higher side, it would face a hurdle at 46200.
Nifty IT Index:
The Nifty IT index closed at an unchanged level. The next level to watch out for would be 29700, with resistance at 30000.
All in all, caution is advised for Nifty, and traders should monitor the key support and resistance levels.
In the Bank Nifty, consider short positions with targets around 45700/45600 levels. And for the Nifty IT index, be a buyer in select stocks with a medium-term view in the Technology 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.
