NIFTY TECHNICAL OUTLOOK
Based on Market Closing on Wednesday, July 24, 2024
In the last trading session, the Nifty closed at 24,413.50, down by 65.55 points or 0.27 percent. The downtrend will continue if the index remains below the short-term resistance level of 24,500.
The Nifty opened at 24,444.90 with a negative bias and hit an intraday low of 24,307.30. However, it recovered from the low and finally closed at 24,413.50. The top sector gainers were media, realty, pharma, and IT, while the major losers were banks, financial services, and FMCG. The market breadth was negative, with 1,895 stocks rising, 670 falling, and 81 remaining unchanged. The top gainers in the Nifty index were HDFCLIFE, BPCL, TECHM, and NTPC. Conversely, the major losers included BAJAJFINSV, TATACONSUM, BRITANNIA, and AXISBANK.
From a technical standpoint, momentum indicators signal a negative trend. The Nifty remains below the short-term moving averages and formed a small black candle on the daily chart, closing below the previous day's close. This pattern indicates a potential continuation of the downtrend. The nearest short-term resistance is at 24,500 levels, and if the index remains below this level, the downtrend may persist. On the lower side, the index has intraday support at 24,400 levels.
Intraday Levels: Support - 24,400, 24,300, 24,200 Resistance - 24,500, 24,600-24,700 (15-Minute Charts)
Positional Trading: Short-term support - 24,000-23,365 Resistance - 24,500-25,000
BANK NIFTY
In the preceding trading session, Bank Nifty closed at 51,317.00, registering a loss of 461.30 points. Technically, the momentum indicators signal a negative trend, and the index remains below the short-term moving averages. Additionally, the index formed a black candle on the daily chart and closed below the previous day's close, suggesting that the downtrend may continue in the coming days. The nearest intraday resistance is at 51,600 levels. For a pullback rally, the index needs to move above this level.
For intraday traders, the support levels are at 51,200, 50,800, and 50,400, while resistance levels are identified at 51,600, 51,900, and 52,200, as indicated by the 15-minute charts.
Positional traders should monitor short-term support levels at 50,650-49,300, with resistance at 51,900-53,250.
