The Asian markets traded mostly down, while the US stock indices ended mixed amid a slew of corporate results.
The trends on Gift Nifty also indicate a gap down opening for the Indian benchmark index. The Gift Nifty was trading at 19,873 as compared to Nifty’s Thursday close of 19,979.15.
Investors will watch out for the key corporate earnings for the June quarter with index heavyweight Reliance Industries to announce results later today. Market will also react to Hindustan Unilever Ltd (HUL) and Infosys Q1 results.
Meanwhile, on Thursday, the upward march of the equity market continued for the sixth consecutive session as equity benchmarks the Sensex and the Nifty closed at fresh record highs amid mixed global cues.
The Sensex closed 474.46 points, or 0.71%, higher at 67,571.90 while the Nifty closed up 146 points, or 0.74%, at 19,979.15, on Thursday.
“Unlocking of value by heavy weights (like RIL & ITC) is apprising the main indices. The anticipation of a good Q1 results from banks, is providing an extra boost to drive to new highs. Mixed cues from global peers is not disturbing the mood of the domestic market as FIIs inflows stay put to the prospects of the Indian economy,” said Vinod Nair, Head of Research at Geojit Financial Services.
On the technical side, Nifty formed a long bull candle on the daily chart with minor lower shadow.
“Technically, this market action indicates sharp upside momentum for the market. Though, Nifty placed at the highs, there is no sign of any tiredness or reversal pattern building at the new highs. Hence, one may expect further upside in the short term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Moreover, smaller degree higher highs and lows is in force in Nifty as per daily timeframe chart and presently, Nifty is in line with new higher top formation, he added.
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Nifty
Nifty was just 9 points shy of the 20,000 mark on Thursday. The index’s value remains above the critical moving average, indicating a positive trend.
“The RSI shows a bullish crossover, suggesting potential market strength. In the short term, the index is expected to stay positive. However, if it fails to surpass the 20,000 level, investors might engage in profit-taking,” said Rupak De, Senior Technical analyst at LKP Securities.
According to him, there is a support level at 19,800, which could attract buying interest during potential pullbacks.
Bank Nifty
Bank Nifty is currently experiencing a strong bullish trend, with the bulls dominating the market and the index surpassed the key resistance level of 46,000, indicating a continuation of the upward momentum.
“The index is characterized by a series of “higher high and higher low formations,” which is a bullish pattern that confirms the strength of the uptrend. The support level for the index is at 45,500, and as long as this level remains intact on a closing basis, the overall trend remains bullish,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Shah is of the view that a break below this support level could signal a potential shift in momentum and may warrant caution for bulls. He believes, on the upside, the next immediate hurdle is placed at the 46,400 – 46,500 zone.
“If the index manages to break above this resistance zone on a closing basis, it could further accelerate the upward movement, potentially opening room for higher levels,” Shah added.
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Updated: 21 Jul 2023, 08:24 AM IST