NIFTY PREDICTION OPTION CALL PUT TIPS & Q4 REUSLT REVIEW FOR 19 JULY 2022

19 july 2022

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The charge of bulls going nuts on a Monday with a broad-based rally is always a sight to behold, and what's even more heartening is to see investors moderate and reset their expectations for the quarter in line with the rebalancing on the ground. The enchmark indices ended July 18th on a positive note for the second straight day, with Nifty above 16250. Markets started the week on a buoyant note, gaining nearly a percent and a half, following firm global cues. After the gap-up start, the benchmark gradually increased throughout the day and eventually settled around the daily high. Strong US retail sales data dampened concerns over an aggressive rate hike of more than 75 basis points and provided much-needed optimism for global equities. The European Central Bank is set to hike interest rates for the first time at its meeting this week in a bid to curb record-high inflation. Firm global cues supported market sentiment as benchmark Sensex closed above the psychological 54,000 level on strong overall buy support. The recent sell-off had made some stocks attractive, so traders bought IT, metals and telecom stocks. Finally, the Sensex rose 760 points to 54521 and the Nifty rose 229 points to 16278. Hindalco Industries, IndusInd Bank, Infosys, Bajaj Finserv and Tech Mahindra were among the top Nifty winners, while Britannia Industries and Dr. Reddy's losers included Laboratories, HDFC Bank, M&M and Maruti Suzuki. All industry indices ended in the green, with information technology, PSU Bank, metals, energy, oil and gas, banking, real estate and capital goods indices up 1-3 percent. BSE mid-cap and small-cap indices were each up over 1 percent. All sectors, except defensive, i.e.

FMCG and Pharma contributed to this movement. The broader markets also ended in the green between 1.4% and 1.7%. Consequently, the Nifty ended on a positive bias near the daily high at 16280, up 1.4%. The Nifty saw a brief consolidation for the past week, resulting in an inside bar pattern on the weekly chart. On the downside, it received support from the 20 DMA and the bottom of the hourly chart's rising channel. From these support parameters, the index has made a bounce higher. On daily charts, Nifty has formed a long bullish candle, which indicates a continuation of the uptrend in the near future. For traders, 16100-16200 would act as a strong support zone and above that the index could reach the 16350-16500 level. On the upside, the uptrend below 16100 would be vulnerable. On July 18 it broke above the swing high of 16275. This shows that the Nifty continues to pull back on the higher side. It is marching towards the 78.6% retracement of the June decline and the major weekly moving averages. Thus the index can test 16400-16500 upwards. On the upside, 16150-16050 will now act as a near-term support zone. Markets are largely mirroring their global counterparts, particularly the US, while domestic factors such as macroeconomic data and earnings are causing volatile swings in between. Amidst all of this, we reiterate our bullish but cautious view as we eye the 16350-16450 zone in Nifty. Participants should focus more on stock selection and overnight risk management. The Nifty Index saw a strong breakout on the daily chart and closed above the 16250 level. The daily chart's RSI indicator has completed a positive crossover, confirming the index's strength. The index is likely to test the 16500-16700 level on the upside. Support at the bottom lies in the 16200-16000 zone. The 1.5% gain seen in the benchmark indices today reflects the optimism behind the progression of the southwest monsoon as the BFSI & IT Index led from the front and was well supported by broader market stocks.

Resistance: 16325, 16375, 16425

Support: 16250, 16200, 16150